Bridge lending is starting to loosen for 2025

Count on plenty of available bridge capital throughout the year, given market uncertainty. Bridge lenders are increasing their allocations for 2025, which will lead to more competition and looser underwriting standards. Many out-of-the-box deals, assets coming out of construction or loans needing higher leverage will have to seek bridge financing. With the gap narrowing between SOFR-based and Treasury-based lending, keep an eye out for more “bridge light” lenders to take on more risk than they usually would. Expect life companies to be more active in bridge lending this year, as well as some CMBS lenders entering the game.