Will There Be an Influx of Commercial Lending in 2014?

After reading this article on REIT.com, it seems like we can expect an influx of commercial lending in the coming months. It’s heady stuff to be sure, but as always there are caveats.

Commercial Real Estate Finance Council President and CEO Stephen Renna noted recently  that the outlook across all lending sectors – commercial mortgage-backed securities (CMBS), banks, life insurance companies, private equity, and Fannie Mae and Freddie Mac – continues to improve. Continue reading Will There Be an Influx of Commercial Lending in 2014?

The Commercial Real Estate Picture – Bull Market, or Just Plain Bull?

I recently came across these results from the NREI/Marcus & Millichap Investor Sentiment Survey. It shows record-high investor sentiment, and it certainly paints a rosy picture.

As someone who’s knee-deep in the market I have to throw up a major caution flag here. Investors are indeed anxious to buy, but this sentiment, in my opinion, needs to be tempered by two unavoidable facts:

  1. There is very little product out there; and
  2. What little product is available seems to most of us to be overpriced (I guess those two statements are related.  Buyers are anxious to buy, there is not much product, prices go higher as demand exceeds supply). Continue reading The Commercial Real Estate Picture – Bull Market, or Just Plain Bull?