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Low Cap Rates Creating More Demand for Construction Deals

With ultra low cap rates making it difficult for investors to hit return requirements, new construction deals have increased in popularity, and it is allowing lenders to be selective.

By Kelsi Maree Borland | kelsimareeborland | Updated on August 25, 2017

Ultra low cap rates are creating an increased demand for construction financing. Cap rate compression has made it difficult for investors to get their required yields, and as a result, many are turning to new construction projects. The heightened demand has allowed lenders to be more selective when looking at construction financing deals. This year, Shahin Adeli, VP at CBRE, and his team secured $100 million in construction financing for clients, for industrial, retail and office properties. To find out more about activity in the construction lending market and how the process is evolving as the result of increased competition, we sat down with Adeli for an exclusive interview.

GlobeSt.com: Is construction financing beginning to pick back up?

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