COMMERCIAL REAL ESTATE LENDING UPDATE

By Michael Green

Commercial real estate (CRE) lending increased for the 5th consecutive year in the U.S. finishing out a strong 4th quarter.  The increase was spread across all types of lenders and property segments. About ½ of the closings were for acquisitions, significant in light of the bulge in refinances coming due in the 2015-2017 window.  These are the 10-yr. term loans that were originated in 2005-2007 at the top of the last CRE cycle.

Retail, hotel and specialty properties saw the biggest increases reflecting buyer demand in these sectors.  Specialty properties which are typically single-tenant occupied have come into high demand over the past several years as investors suffering from financial repression have sought out the higher yields in these net-leased properties.

We welcome the opportunity to provide financing for your next net-leased investment, or refinancing your current term loan coming due.

Michael Green is a Commercial Loan Officer with Counsel Mortgage Group, LLC.  Copyright © 2015 Counsel Mortgage Group, LLC   All rights reserved  AZ MB# 0909580