Current lender activity within commercial real estate remains robust among life insurers, banks, GSEs and alternative providers such as REITS and debt funds.
As 2018 represented a record year for borrowing and lending, The Mortgage Bankers Association reported that the momentum continued into the first quarter of 2019. Nearly every property type experienced increased volumes in Q1; displaying year-over-year gains by dollar volume of 73% in the industrial sector, 41% in the healthcare sector, 9% in the hospitality sector and 9% in the multifamily sector.
While strong economic and market fundamentals have been instrumental in driving this activity, the efforts of lenders themselves have proven significant.
Within this past year, the Federal Reserve cut interest rates and revealed production volume caps, enabling agencies to pull back and allowing other lender types to step up. A CBRE lending survey suggested that due to these changes, life companies and alternative lenders in particular led origination activity through Q3 2019.
With the increased number of competing lenders additionally benefiting borrowers and fueling investments, the loaning demand is also expected to hit record highs next year, as lenders take advantage of the reduced interest rates.
However, with the threat of an imminent recession in 2020, lenders are currently delicately balancing between anticipating the economic climate and confidently executing deals. Though unable to rely on the future, lenders remain aggressive; working overtime to make calculated decisions, produce favorable loan volumes and meet demands.
With a deep understanding of the space and a healthy appetite for new deals, lenders are additionally catering to the ever-changing market by remaining open to alternative products; continuously adjusting their deals and mindsets – no matter the economic climate.
For GlobeSt. Real Estate Forum's next Influencers series, we are looking to shine a spotlight on lenders of CRE capital. We will profile not only the individual pioneers who have made an impact with their efforts, but also the teams and groups within lender organizations, as well as entire companies or entities that have become critical to the industry.
Be it through their contributions to the industry, the vast successes they've racked up in completing deals, or the innovations and best practices they've introduced to the business, these are Commercial Real Estate's LENDER INFLUENCERS in FINANCE.
The deadline for nominations is February 21st, 2020. To apply, click here.
|Please consider nominating a talented professional or company for our following, available recognitions:
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Ingrid Tunberg
Ingrid Tunberg sits on the editorial team as a coordinator and reporter for Real Estate Forum and GlobeSt.com. She is responsible for writing stories, assisting with industry awards and marketing nomination events. Previously, Ingrid worked as a copywriter across various industries throughout New York City and Chicago.
