National + Finance | February 23, 2021

CRE Lending Momentum Accelerates in Q4 2020

The CBRE Lending Momentum Index, tracking the pace of commercial loan closings in the U.S., reached a value of 221 in December, up by 38.2% from September. However, the index was still down 16% from a year ago as the fourth quarter ended.

“Capital markets helped bolster commercial mortgage lending at year-end as equity prices rose and corporate loan spreads tightened,” said Brian Stoffers, global president of debt & structured finance for capital markets at CBRE. “With lending markets anticipating the effects of additional government economic stimulus on growth and inflation, Q4 2020 saw increased participation by alternative lenders and life companies compared with Q3.”

As capital availability improved in Q4, lenders granted generally higher loan proceeds and underwriting standards were slightly less restrictive. Average loan-to-value ratios increased for permanent commercial and multifamily loans after reaching lows in Q3 that haven’t seen since the Global Financial Crisis.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).