I had an interesting conversation this week with one of my top commercial lenders connections. What I learned is that the CRE lending world is going through some big shifts right now and the commercial lenders are split into 3 groups right now: - Small/Regional banks that are hungry for new loans. They are actually calling commercial debt brokers asking to see what’s in their pipeline
- Regional banks that went through recent mergers (specifically Huntington and Fifth Third Bank/Comerica). These guys are actively dropping loans and not renewing as they rebalance their deposit/loans ratios across their expanded portfolio. They are still lending but being very picky.
- Large institutional lenders, CMBS lenders, and Life companies. These still lend and offer pretty aggressive terms
What does it mean for you? Investors that acquire quality assets have a unique opportunity to capitalize on the aggressive terms the smaller banks are offering. What about interest rates, will we see a rate cut soon? Not according to the analysts, the bankers, the lenders and most of the people in the industry I talk with. The consensus in the market seems to be that we might see a 0.25% rate cut sometime towards the end of the year or worse, there are some that believe we might even see a rate increase… As we do every week, we took time and reviewed all the commercial listings that came on the market and curated this hand-picked list representing the top opportunities we identified as the best value. If you wanted to keep up to date on retail real estate news, we have a LinkedIn Newsletter you can subscribe to.
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