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Keep an eye out for conventional banks to become more active in construction lending over the next year after the recent loosening of HVCRE regulations.  However, debt fund and private money lenders will continue to dominate the construction sector.  Count on lenders to be more disciplined with construction lending during the second half of the More

The recent rollback of the Dodd-Frank banking regulations should offer some relief for banks.  The changes bring clarity to certain provisions related to HVCRE loans and free up additional bank capital.  As a result, banks will be able to price and size construction loans more aggressively after losing some business to non-bank lenders due to More

Watch for ample liquidity in the senior housing debt market along with new debt funds, banks and life companies entering the space.  Lenders are aware that the numbers will be exceptional for the senior housing space over the next 10 to 15 years with the “silver tsunami” coming to the market.  Senior housing has also More

Count on an increase in demand and tons of liquidity for industrial properties.  Many lenders are underweight in their portfolios, so there will be plenty of capital but not enough available product.  Borrowers will see fierce competition from lenders who will become more aggressive with terms in order to win deals.  Rates will be in More

There will be no shortage of condo construction lending for strong projects with quality borrowers.  However, borrowers will see tougher underwriting and a possible slow down because of concerns with being late in the economic cycle.  Both lenders and developers will be conservative on projected sales pricing given the issues impacting supply.  This could lead More

Count on hoteliers to see a stable lending environment, especially with debt funds, private money and CMBS lenders who are hungry to put out capital.  These lenders will be aggressive with pricing and leverage in order to win deals.  Watch for an increase in debt funds from Asia and Europe becoming more active in the More

The number of bridge lending players surges and there will be ample new sources of funds for borrowers to tap into.  Previous lender concerns about any risk associated with bridge financing are also diminishing.  This heavy competition in the bridge space will lead to higher leverage and more attractive lending terms, such as backing off More

Multifamily construction lending will be strong this year as borrowers look to capitalize on rates while they remain relatively low.  Congress’ recent attempts to reform the HVCRE regulations will affect how banks of all sizes compete for multifamily construction loans going forward.  The original framework was vague, so now Congress will attempt to tighten the More

Watch for life companies, banks and CMBS lenders to pick up retail market share this year despite some recent bankruptcies in the sector.  Underlying macroeconomic fundamentals that support retail performance are strong, especially in established MSAs and up-and-coming markets in the Sunbelt and Pacific Northwest.  Leverage can reach as high as 75% for any retail More

Hoteliers will see a plethora of new bridge lenders enter the scene this year in their search for yield.  Bridge lenders will have a strong overall appetite for hotels with aggressive pricing and strong leverage, but they could pull back quickly if there are declines in market-wide RevPAR.  Senior lender underwriting will be more cautious More

Keep an eye out for more capital available from banks, life companies and CMBS lenders for office, especially as rents trend up in many markets.  Lenders will also start to dip their toes into more office deals as lenders take a step back from retail and competition for multifamily and industrial increases even further.  Borrowers More

Count on plenty of construction lenders to be active this year, although the lack of new land sales will lead to less overall projects in the pipeline.  As this cycle continues, banks will become more risk-averse.  Also, expect an increase in construction costs and moderating rents over the next six to 12 months.  This means More