Latest Finance Trends

Capital providers will look more favorably at self-storage this year. Count on additional lenders trickling into the space, as the sector outperforms some of the more traditional property types. Lenders like the fact that self-storage has shown to be recession-proof, that most properties are cash flowing and that LTVs have not been constrained. Lenders expect More

Although lending will be a bit slower, look for plenty of available capital in the manufactured housing community (MHC) space this year. It will be a fluid market with the agencies, life companies, banks, CMBS, bridge and private money lenders all considering deals. However, underwriting will be more challenging, and borrowers will need to bring More

Manufactured housing community (MHC) lending is slowing because of increased interest rates and existing cap rates remaining low. However, the space continues to offer one of the most affordable housing options available. Financing will be strong as demand for affordable housing continues to grow, although underwriting criteria will tighten up with many lenders requiring experienced More

Office financing will be difficult this year and even deals with the strongest sponsors in favorable locations will be tough. Many lenders and borrowers expected office to bounce back, which has not happened yet, and it is affecting the lending environment. More

Total multifamily loan volume is projected to decline this year; however, multifamily bridge lending will be robust for well-capitalized sponsors and those owning properties that have significant equity. There is expected to be a sizable volume of loan maturities on land acquisition, A&D and construction financings, which should keep bridge activity strong despite the recent More

Borrowers will see plenty of available capital for industrial deals over the next 12 months. Count on all lenders to be more conservative with terms and underwriting. Lenders will no longer underwrite low cap rates, which will limit loan proceeds. Both lenders and investors will be drawn to the cheap price per square foot versus More

Industrial will continue to be one of the most sought-after property types by lenders and investors this year, however, terms and underwriting will be more cautious than seen the past few years. Borrowers will see lower leverage and higher rates. Also, expect lenders to be way more conservative when underwriting rent growth going forward. More

There will be available capital for multifamily construction this year, however, rising interest rates and the widening of cap rates could slow things down. Overall volume will drop even in strong markets, as many lenders want to bid on deals, but pricing and underwriting will be constrained. Lenders will be worried about the ability of More

Borrowers will see plenty of available capital from life companies in 2023, especially as competition wanes from the other lender types.  Life companies that can adapt with market conditions the quickest will be able to capture the most business this year.  Watch for LCs to be pickier on asset type and quality versus in years More

It will be interesting to watch the life company lenders this year. Predictions seem to be split on where the total 2023 life company allocations will end up, with National Life, Nuveen, CUNA Mutual and GPM Life all noting lower lending levels, while major player Voya Investment Management predicts a slight increase over 2022 originations. More

Anticipate the hotel lending markets to stabilize this year and look for an increase of lenders to come back into the space. Borrowers will see low leverage — typically around 5% less than a year ago — and wider spreads until demand fully returns. There will be a strong need from hoteliers that have to More