The capital markets have experienced a rapid transformation over the course of 2022, bringing attention to new themes and trends that continue to unfold. Rising rates, economic uncertainty and record-setting inflation continue to impact the marketplace, including lender appetite. While we don’t want to present a pessimistic outlook, as there is still plenty of demand for mortgages, it is important to be transparent and note the shifts that are taking place. Here are some of the themes and trends we have noticed in this quickly changing environment.What does the lending landscape look like right now? Life companies, banks, conduit lenders and debt funds are asking themselves th...

In reading the Quarterly Mortgage Banking Association’s (MBA) Q1 2022 loan originations report, readers would expect a thriving economy in 2022 and predict another year of record low interest rates, especially for owners of industrial real estate.  Some of the headline stats:·     Commercial and multifamily loans up 72% compared to first quarter 2021·     Loans on industrial assets increased by 145% compared to first quarter 2021 (highest increase per product type)However, the global economy and lending universe have quickly changed, and a large portion of the positive origination gains in Q1 2022 is from loans sourced in Q4 2021.  We have officially entered the long-a...

If you’re on the fence about refinancing, now is the time. After months of discussing the risks of raising interest rates too quickly, the Federal Reserve is changing course and suggesting that it will raise rates sooner than anticipated in response to surging inflation and falling unemployment rates. See the WSJ article below.  We’ll be following next week’s Fed meeting on 12/14-12/15, but “projections are likely to show most of them expect more than one quarter-percentage-point increase next year.” Please reach out to see if we can help you lock in an attractive interest rate—before rates go up.High Inflation, Falling Unemployment Prompted Powell’s Fed Pivot...

As seen the the CREJ Retail Properties QuarterlyThe strong economic rebound over the summer triggered a rapid recovery in retail investor demand, and this momentum is expected to continue well into next year. Tenants’ sales increased, delinquencies are down, and the majority of landlords are back to pre-pandemic collections. Although headwinds remain with supply chain issues and labor shortages, strong consumer demand is forecast to continue and strengthen in 2022. While some rents are being reset, the majority of recent retail loans we’ve closed indicate pre-pandemic rents are holding or increasing. Retail development historically has been tempered compared to...