Latest Finance Trends

Hotel lending volumes should increase in the coming months, especially as the wall of maturities gets closer. A lot of lenders have been on the sidelines, but the asset class is performing well and garnering attention from capital providers. More lenders are starting to dip their toes back in the space, although with cautious underwriting. More

C-PACE is long-term, fixed-rate, non-recourse financing that is repaid as a special assessment on the property that can fund improvements related to energy savings during construction, rehabs and/or adaptive reuse. This is a great way for borrowers to enhance leverage and is cheaper than mezz and pref equity. Current rates are in the low to More

There is plenty of available capital for retail, although there is still a flight to quality in the sector. Lenders will be cautiously optimistic, especially since retail is seeing low vacancies across the country as inventory is tight, which is driving rents up. Many lenders are also full on multifamily and industrial, and retail is More

Anticipate office lending to be very challenging for the next 12 to 18 months. There will be less capital available for office until the demand equation is clearer. Underwriting will be more conservative, including lower loan to value ratios and shorter amortizations. A number of buildings are faced with underutilization due to many employees still More

Although there has been some slowdown, construction lending overall should strengthen by year’s end. Rates should start to plateau and lenders that have been on the sidelines since the bank failures will come back to the market later this year. They will return once there is some certainty in bank lending and in order to More

As the rollercoaster year 2022 came to an end, many investors approached 2023 with hesitation due to high list prices, uncertain cap and interest rates, and inflation driving up operating costs. Market conditions have not been ideal, both for buyers and sellers. In fact, Tyler Bynum, vice president of multifamily investment sales at Worldwide Commercial, More

Lenders are still targeting multifamily deals, especially in markets with high barriers for new development. This will continue as long as high residential mortgage rates continue to force people to stay in rental housing versus buying a home. Multifamily lending will be more about sponsorship and location than seen in the past few years. More

Count on the total commercial real estate lending and borrowing to fall to $654B in 2023, which is a 20% drop from the $816B total in 2022, according to an updated baseline forecast recently released by the Mortgage Bankers Association. More

Life companies will be some of the most active players for the next few months, as many banks continue to stay on the sidelines and the CMBS market remains tough because of high pricing. Watch for life companies to be pickier on what deals they will choose going forward based on their perceived risk. More

Watch for life companies to be some of the most active players for the next few months. Turmoil in the banking market has led to a pickup of life company lending. Even with this increase in activity, most life company lenders themselves expect overall volumes to be down. More

Borrowers will continue to see strong lender demand for industrial. However, the industrial market might start to soften as some spec supply will be coming online this year. Despite any hurdles, industrial will still be a favored property type and lenders will stretch underwriting in order to win the deal. Class A strong credit tenant deals will see aggressive rates, while riskier deals will much be harder to price than six months ago. More