November 17, 2020
Decelerated by sluggish activity on the investment sales front, commercial real estate loan volume slowed in the third quarter, CBRE said in reporting the results of its latest Lending Momentum Index. However, a rise in loan applications recently is a promising sign for higher year-end closings.
“Stabilized multifamily continues to receive strong support from the agencies, while banks and life companies continue to underwrite lower leverage multifamily, industrial and selective office transactions,” said Brian Stoffers, global president of debt & structured finance for capital markets at CBRE. “Retail and hotel properties, as well as those properties with transitional issues, remain challenging to underwrite.”
He added, “One promising sign has been the re-emergence of quotes from alternative lenders in recent weeks, a source of capital for value-add properties and distressed situations.”
Banks gave up market share in Q3, capturing 39% of loan closings compared to more than 70% in Q2.
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