For borrowers, while loan-to-value ratios have inched up, there's still a great need (and many sources available) for mezzanine, B-note and preferred equity financing. Panelists at the conference stressed that they were not in the "loan-to-own" business. Financing prospects are less bright, though, for class B suburban office properties and unanchored retail centers (the term "junkyard dogs," used to describe such properties, quickly became a conference favorite).

The CMBS market is making a comeback, after its two-steps-forward, one-step back activity earlier this year. Spreads have continued to tighten. One good sign is the declining number of securitized loans in special servicing, according to Fitch Ratings.

Owners and developers looking to do joint ventures with institutional investors, pension funds or REITs must be aware that track record, execution capability, character and integrity count. As Paul Curcio of Prudential Real Investors observed, they are not interested in funding "three guys and a dream."

Despite the market's headwinds, uncertainties over issues ranging from tax policy to financial and political issues in Europe, Asia and the Middle East, not to mention the increasing scrutiny and stringent underwriting by financial sources, the good news is that for the property owners and developers seeking recapitalization or refinancing, who have a solid business plan and a demonstrated ability to add value at the property level, capital will be available in a variety of structures from both private and public sources.

A cautionary note: the low-rate, low-inflation environment is a double-edged sword for our industry. So far, underwriting has been sober and based on current market realities. Whether borrowers and lenders will keep their NOI, appreciation and exit expectations in check, of course, remains to be seen.

Debt and equity investors' relentless quest for better yields may lead them to funding lesser-quality, higher-risk properties, resulting in higher pricing and lower cap rates for those properties. As economist Sam Chandan has warned, "today's interest rates and monetary policy are not 'the new normal.'"