February 10, 2020
The CBRE Lending Momentum Index, tracking the pace of U.S. commercial loan closings, reached a value of 263 in December 2019, virtually unchanged from its third-quarter 2019 close and up 4.2% from a year ago. CBRE attributed this to the Federal Reserve’s interest rate reductions, combined with continued economic growth.
“A favorable capital markets environment for real estate continued to support strong commercial lending activity into year-end,” said CBRE’s Brian Stoffers. “Alternative lenders should remain a plentiful source of lending capital in 2020, particularly for bridge and construction loans.”
He added, “The multifamily agency market also posted a record year in 2019 with volume totaling $148.5 billion. The agencies will have almost $80 billion each to deploy in 2020.”
CBRE’s lender survey indicates that alternative lenders (including REITs, finance companies and debt funds) accounted for 41% of Q4 non-agency volume, up from 29% in Q3 and 29% a year earlier.
For comments, questions or concerns, please contact Paul Bubny