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Bank lenders seem to be proceeding with transactions, however, count on them to focus on the best sponsors, safest real estate assets and strongest markets with conservative terms.  Many banks are increasingly concentrating on their existing clientele and are requiring more depository relationships with those borrowers.  Local and regional bankers seem to still be willing More

Hoteliers will see construction lending slow down drastically while the full impact of the pandemic on the hospitality industry remains to be seen.  Hotels will be the hardest hit, as leisure and business travel are put on hold for the foreseeable future and occupancies are expected to drop into the single digits.  Some lenders will More

Industrial borrowers will see the most available capital, as the property type will be the number one choice for lenders over the next few months.  Uncertain economic conditions caused by the pandemic will lead to much more conservative lending and most capital providers consider industrial the safest bet.  Quarantines, shelter-in-place orders and social distancing has More

Borrowers will see plenty of available capital for senior housing from the GSEs, banks, debt funds,finance companies and life companies.  There will be a flow of new capital into the sector and expansionof existing groups raising more money.  The silver tsunami is set to hit around 2026, so the sector will continue to grow as More

Construction borrowers/developers will see plenty of capital from diverse sources as lenders seek to grab better returns.  Banks have pulled back on leverage, but non-banks and debt funds have backfilled the market.  Non-bank lenders will continue to snag market share from traditional lenders, including an increase in life company executions on larger projects and family More

Count on ample mezz capital to be deployed this year, especially as leverage levels drop and mezzanine loans strengthen capital stacks.  There will plenty of demand as sponsors want more leverage and are willing to pay a premium to push higher up the capital stack.  Mezz loans will make more sense to borrowers than equity More

Watch for a plethora of competition in the bridge lending space leading to an overflow of capital that needs to be deployed.  Anticipate more investors turning toward bridge lending as debt makes more sense than equity at this point in the cycle.  This continued increase in competition means better pricing and more flexibility/creativity with terms.  More

Watch for lenders to become more open-minded about retail lending this year.  The market is coming out of an era when people were extremely worried about online retail sales.  Many have come to the realization that there is still a need for brick-and-motor stores. Therefore, lenders will be more inclined to provide capital than the More

Count on banks to be extremely active during the first half of the year and expand their boxes in order to compete.  Banks are under pressure to grow their balance sheets by 5% to 6% this year.  They will want to re-enter the construction lending space and strive to win deals back from debt funds.  More

Count on aggressive underwriting for multifamily loans during the first half of the year as lenders compete for clients.  There is a ton of capital available in the market, especially as Fannie Mae and Freddie Mac start the year swinging.  This increased competition is forcing lenders to reach outside of their usual boxes in order More

Expect accessible hotel capital from banks, conduits, life companies, bridge lenders and debt funds this year.  However, borrowers will see stricter underwriting.  The current low-rate environment and the fact that lenders are all trying to get money out the door will lead to plenty of available capital during the first two quarters of the year.  More

Look for robust demand for CMBS loans this year as borrowers strive to lock in 10-year terms whilerates remain low.  Borrowers will be attracted to the longer interest-only periods, lower leverage and favorable pricing offered by the conduits.  Although, new rating agency guidelines that went into effectthis month will keep leverage levels in check as More