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Regional and local banks will be extremely competitive next year, while the major banks will concentrate on larger loans and existing clients.  Banks will continue to seek the strongest loans with thorough underwriting of borrower financials, business plans, markets, track record of the sponsor, general contractor, etc.  Overall, bank lending will be slightly more conservative More

Watch for lenders of all types to be bullish next year and fund anything they can get their hands on.  As long as nothing earth-shattering happens and favorable demographics such as low rates continue, the economy will move along in a positive trend.  Competition will be fierce, especially with the agencies back full swing in More

Count on equity investors to continue deploying plenty of capital for the foreseeable future.  Investors will focus on different investment types and diversify into new asset classes in order to grab yield next year.  Pref equity investments will be some of the most liquid capital in 2020, especially as a lot of JV equity groups More

Retail borrowers will see plenty of available capital from banks, life companies and CMBS lenders going forward.  While lenders will be cautious, many believe that the Amazon fallout has already played out and retail will stabilize.  There will be a continued flight to quality as lenders seek best-in-class sponsors that can mitigate risk by contributing More

Anticipate a strong mix of agency and bank capital for multifamily in 2020.  Life companies will also increase their allocations for multifamily next year by approximately $10B.  After a slowdown during the summer, the agency world has stabilized with new allocations of around $20B per quarter and they will resume competitiveness in the market.  Having More

Expect new bridge lenders to enter the market, especially as borrowers utilize bridge loans on a more frequent basis.  There are more debt funds being raised and life company lenders creating bridge programs.  Watch out for traditional equity investors entering the bridge debt market to grab yield.  There is a ton of money in the More

Developers will see plenty of capital come their way, however banks will be more cautious on LTC, while private money and debt fund lenders will push leverage higher.  There will be a strong appetite for construction loans with proven sponsors, especially multifamily projects.  Lenders will become more conservative with underwriting, while sponsors will be heavily More

NRP Group expects 2020 to be explosive for new starts. It already has 20 projects closing in 2020 with another handful pending committee review that are anticipated to boost expectations to 24 or 25 developments. Of the 20 confirmed projects, eight are market rate, three are workforce housing and nine are affordable, for a combined More

Count on more developers to scour the suburbs for deals, play with unit sizes and even look at single-family rental (SFR) models. These tweaks to their strategies stem from a battle against costs as developers attempt to keep their construction pipelines flowing. Merchant builders especially need to keep pipelines full, even if deals aren’t the More

Office lending will be brisk going into 2020 with banks, life companies and CMBS lenders all funding deals.  There will be continued demand for office as long as the economy is strong and rents remain steady.  Vacancy rates are low, with some markets enjoying single-digits.  Rental rates continue to increase, though slightly slower than in More

Hoteliers will see available capital for construction, especially from debt fund lenders that are filling the void left behind by banks.  Non-recourse capital will be available from non-bank lenders at higher rates.   Projects in strong locations with multiple demand generators will be desired.  Borrowers need to show a story that ties together the location, More

Expect cap rates for student housing to see some widening. Sellers are still trading at low cap rates after the last two years had a tidal wave of capital flood the space, driving prices up. The student housing industry, as a whole, should continue to benefit from strong investor interest and attractive investment trends such More