Hotel financing volumes will increase, with the majority of transactions weighted toward refis rather than acquisitions. This is primarily due to many owners focusing on restructuring existing debt in the face of tighter capital markets and elevated interest rates. Acquisition financing will remain limited until more properties come to market at valuations that align with buyer expectations. More
Lending in the industrial space will remain healthy with all lender types vying for deals. Lenders will continue to aggressively pursue industrial despite the headwinds that some markets are experiencing, but spreads and leverage are bifurcated depending on asset quality. By 2026, look for normalized pricing on best-in-class product, with wider gaps for secondary or commodity space. More
Retailers are seeing strong mid-year performance, with steady or increased sales and foot traffic driving optimism. According to a survey by Levin Management Corp., 75% of retailers reported they met or exceeded 2024 sales figures. Despite this, retail sales slowed in June, which could suggest consumer caution amid economic uncertainty. More
Borrowers in the senior housing sector will see more lending options going forward, especially as banks return to the space. Although, sustained high interest rates are still pushing many banks to underwrite conservatively. The sector will continue to expand as operations such as rents, occupancy and staffing continue to stabilize. More
We asked the experts what they foresee for the senior housing lending market for the rest of 2025 and into 2026. Here is what they had to say. More
Life company allocations have grown, something that is expected to continue into 2026. LC lending has been steady; however, it could start to slow as they meet allocations for the year, typically around October. Underwriting will remain conservative, although LCs could become more aggressive to win multifamily loans from the agencies. Keep an eye out for them to consider riskier deals as a way to grab yield. More
There has been a slew of recent retail leasing activity in the Motor City and its suburbs with everything from spas to trampoline parks to various restaurants coming to the area. This recent activity, along with investors and lenders starting to re-enter the market, shows that the region is on the upswing. Michigan-based commercial real More
Lender appetite for multifamily construction lending will continue to strengthen, especially as demand for rental housing remains strong across the country. Many lenders have liquidity and will look for yield they can only get from construction deals. Debt funds and private money lenders are especially looking to deploy capital, while banks are also coming back in a big way after being on the sidelines. More
The pandemic reshaped the multifamily real estate landscape, resulting in a rollercoaster of trends in rent prices, vacancies and construction activity. After years of disruption, the market is showing signs of stabilization as new construction slows and renter demand strengthens. But to fully understand the current market, let’s take a look back. More
CMBS lending volumes will be strong during the second half of the year — with a lot of demand also driven by SASB deals. Citi notes that the slowdown in post liberation has led to a lot of pent-up demand, which should lead to an active second half of the year. The lender foresees $130B in total originations for 2025. Wells Fargo, Deutsche Bank and Greystone all predict $120B total in the overall market for 2025, while Argentic expects $100B total. More
The pandemic led to a decline in the need for office space as companies adopted remote and hybrid work models. Even as cities such as Los Angeles and San Francisco implement return-to-office initiatives to revive downtown economies, office vacancies remain high while leasing and sales activity lag. But it’s not all doom and gloom for building owners.
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Retail financing will be strong going forward, as life companies, banks, credit unions, CMBS and debt funds all continue to allocate capital for most product types within the space. Watch for lenders to widen what markets they will look at based on sponsorship and operations and start considering secondary and tertiary cities. More
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