Active Lending Climate Opens New Opportunities for Investors
- Although commercial real estate transaction activity has been down significantly from last year, about 60% in Q2 2020, activity has begun to revive
- Modest but steady job recovery and strong retail sales will produce an economic bounce in the third quarter
- Banks have emerged as the leading source of debt capital
- Lending is broadly available for Industrial, Medical Office, and Multifamily properties
- Lending for Office, Self-Storage, and Seniors Housing varies on a case by case basis
- Hotels and Shopping Centers continue to face a tighter lending climate
- The wide yield spread and current debt liquidity create unique opportunities for strong levered yields,its second widest level on record
- Unique opportunity for investors exists today as a result of low interest rates, and stable cap rates, the yield spread has opened to or near record levels
- Wide spread and market liquidity create strong yield market opportunity
- Competition in the future could ramp up and create cap rate pressure for the most in-demand property types