CRE continues to attract strong interest from the lending community. While this may not be true of every lender at the conference, the groups we spoke with were planning to increase their 2022 targets for lending in the real estate space, with increases anywhere from 25% to 300% over the next three years.
Lenders value working with quality origination partners. We heard from many of our contacts that they value working with originators who bring them deals that fit their criteria. As allocations across lenders increases, along with the volume of deal screening and underwriting, working with trusted partners maximizes efficiency.
Favored asset classes include multifamily, industrial and net lease. These sectors appear to be the most sought-after asset classes across lenders in today’s market. Grocery-anchored retail centers, along with healthcare and life science facilities, had many admirers as well.
Rates are at historic lows. Among banks, conduits, life companies and credit unions, we heard rates quoted for a typical 10-year fixed loan product in the 2.75 to 3.75% range.
In-person meetings still matter. While we haven’t fully emerged from the pandemic, the ability to meet face-to-face was game-changing for those of us who were comfortable attending theconference. As we continue to fight through COVID-19, finding ways to safely connect in-person with lenders and borrowers will deepen relationships in ways that conference calls and video chats simply haven’t been able to replicate.