Current State of CRE Capital Markets
In a recent interview with our capital markets experts, we dove into the current state of commercial real estate capital markets. Here are the top insights on where capital is gravitating toward, what property types are most popular on the equity and debt sides, and what banks and other lenders are looking for in terms of borrowers and deals.
Popular Property Types for Capital
Our experts suggest that the top three property types capital is gravitating towards on the equity and debt sides are:
Credit-rated single-tenant net leases and grocery-anchored shopping were also mentioned as popular options. The product type seeing less activity is office.
“I was really surprised at the number of lenders that mentioned retail as a top investment at the MBA Conference, in addition to a lot of them talking about the rebound of hospitality.”
Lender Preferences
Our expert emphasizes the importance of finding a financing partner who will manage investor expectations upfront and be transparent and honest throughout the process. In this volatile market, surprises are not welcome, and having a trustworthy partner is paramount.
“Having somebody that you can trust is absolutely paramount because no one wants to get dropped on their head with a surprise three days before closing.”
Managing Expectations
To avoid unpleasant surprises, it’s crucial to have clear and open communication with your financing partner. Be honest about your goals and expectations, and ask questions to ensure you fully understand the process.
In this unpredictable market, staying informed and prepared is essential. Make sure to work with a lender or broker who values transparency and is committed to providing an honest and straightforward experience.
“It’s important that you find a financing partner…that will manage your expectations up front, be vividly transparent and honest with you through the process.”
Navigating the current state of commercial real estate capital markets can be challenging. Still, by focusing on popular property types, lender preferences, staying informed, and building trust and transparency with your financing partner, you can successfully secure financing for your commercial real estate investment.
