Lenders are shopping for retail

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Count on retail lending to loosen going forward, especially for fully leased centers with solid tenants. More lenders will switch back to retail next year, especially as office remains tough to finance. Look for life companies to be the best source, while the CMBS market should pick up in 2024. Banks will actively lend on retail, but will require substantial deposits from borrowers — typically 10% to 30% of the loan amount in deposits. In 2024, retail should be seen as a stronger asset type by lenders, as the property has exceeded expectations in fundamentals and loan performance. More

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