Magazine article Mortgage Banking

CRE Capital Markets Remain Active

Magazine article Mortgage Banking

CRE Capital Markets Remain Active

Article excerpt

* Commercial real estate capital markets remain active despite volatility from Europe's financial crisis, uncertainty about the U.S. fiscal cliff and other concerns, according to Marcus & Millichap Real Estate Investment Services, Calabasas, California.

"The stabilization, and even appreciation, of commercial real estate values has supported increased credit availability and now extends to creditworthy properties in secondary markets," said Hessam Nadji, managing director of research and advisory services with Marcus & Millichap.

Nadji said the strength of commercial mortgage originations for retail and hotel properties drove a 25 percent increase in overall lending volume between the second and third quarters of 2012. Retail lending jumped 56 percent and hotel lending increased 22 percent. Multifamily lending increased 19 percent and office lending increased 15 percent in the same time period. Only industrial property loans decreased, falling 5 percent.

"Portfolio lenders have expanded their allocation to real estate and increased their market share of loan originations," Nadji said. "They compete effectively with conduit lenders on rates and tend to attract the best-in-class properties, but remain more conservative on the loan-to-value [LTV] ratio and geography. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.