National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
New CRE Loan Production Seen Increasing into Q4
Gantry reports a steady pace for new loan production through the third quarter of 2023, although current volume remains lower year-over-year after a record 2022. The volume and pace of new production is increasing into Q4, though, driven by a significant number of rate locked transactions expected to close by year-end, upcoming maturities and the emergence of price discovery for assets in a new era of higher interest rates.
“Market conditions are beginning to normalize and build in a new rate climate, so much so that every quarter of 2023 has exceeded the prior quarter,” said Tom Dao, principal with Gantry. “We forecast that our Q4 production will be our best quarter of 2023 with a solid pipeline already lined up for the first quarter of 2024 with maturity forwards. This can be directly correlated to near-term maturities and movement towards price discovery during a higher cost of capital market cycle.”
He continued, “We are beginning to see areas of concern in some markets, particularly in the office sector, due to near term maturities and leasing challenges. However, we are pleased to report strong performance from our portfolio and maintain confidence in the endurance of CRE fundamentals across all asset classes where leverage is conservative, and sponsorship is active.”
- ◦Financing
