LAS VEGAS-Core assets are still in demand and financing is there for them, but the financing question is open for secondary markets and lower-quality assets. Those were some of the conclusions of speakers at the California Mortgage Bankers Association’s 14th Annual Western States commercial real estate finance conference here this week. The event featured a series of presentations and panel discussions on all facets of commercial real estate lending, drawing lenders, mortgage brokers and allied professionals involved in the financing of commercial real estate.

In a session Thursday, moderator Kent Williams, a senior vice president and managing director at Marcus & Millichap, asked a panel of leading investment brokers to compare and contrast their perceptions of the investment environment now versus a year ago, focusing on buyer demand, availability of financing and other facets of investment sales. The panelists generally agreed that optimism was picking up and everyone was expecting a good year at the beginning of 2011, but expectations have been tempered by the events of recent months, including the slowing of economic growth and slower job growth than hoped for.

Nonetheless, demand for core assets remains high and financing is available, noted panelist Ryan Gallagher, a senior managing director in the Orange County office of HFF, although Gallagher also pointed out that investors have not achieved the rent growth that many had hoped for this year. When it comes time to refinance, Gallagher said, owners of core assets should find debt available, and some will be able to find CMBS debt because “there are certain assets that CMBS lends itself to.”