GlobeSt.com UPDATE: Lenders Run Up Red Flag on Office

ORLANDO-It isn’t going to be a real happy new year for developers/owners planning new office product, but it isn’t going to be a total bummer, either.

Sluggish demand and mountains of sublease space are translating to tighter guidelines as the year opens. But prime existing and redevelopment projects with strong leasing and occupancy can still qualify for long-term 7% money, mortgage bankers tell GlobeSt.com.

“The Orlando office market continues to be a red flag on the radar screen for most lenders as the lack of demand for quality office space and the increasing amount of sublease space dampens class A and B occupancies, forcing lenders to tighten underwriting guidelines,” Todd F. Cohen, vice president, Primary Capital Advisors, tells GlobeSt.come.