National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
CBRE Report: Commercial Real Estate Lending Market Remains Robust
The commercial real estate lending market remains robust, despite financial market volatility and heightened trade tensions, according to the latest research from CBRE. The CBRE Lending Momentum Index, which tracks the pace of U.S. commercial loan closings, kept pace with the previous quarter.
Lending volume closed in Q2 2018 at a value of 202, relatively unchanged from 203 in Q1 2018. Compared to a year ago, June lending volume was down by 10.6%.
CBRE’s Brian Stoffers says, “The commercial mortgage lending market should remain favorable to borrowers for the balance of the year. Loan credit spreads remain tight, and underwriting standards are stable. While there is some risk to an escalation of trade disputes, this has not yet influenced credit availability or pricing.”
Key CBRE report findings:
- Banks were very active in Q2 2018, accounting for almost half of the non-agency lending volume closed during the quarter.
- Life companies captured just over 21% of the non-agency market in Q2 2018, down from 24% a year ago.
- Total CMBS issuance for H1 2018 was $40.5 billion, up from $37.9 billion a year ago.
For comments, questions or concerns, please contact Dennis Kaiser
