CommercialLeads.net - 1/27/2011:
In recent news there have been comments made indicating the commercial lending market is starting to recover. One of the main indicators is the slowly dropping cap rates. Down from a high of over 9% for office and retail in many areas of the country by almost a full half point it seems activity is picking up.
Two other signs are that many REITs, Private Equity Lenders and Life Companies are getting back in the game by slightly raising ltv requirements to as high as 75% for some property types and even as high as 70% for retail in some locations in the U.S. CommercialLeads.net has added 23 new funding sources to its searchable database for clients looking to place deals.
The 2nd sign the market is starting to recover is activity on our network. In the past 60 days we have seen an 18% increase in loan requests from our Commercial Realtor and Title Rep partners (numbering over 127,000). They are starting to be more aggressive in seeking funding for deals that previously would have been shelved.
At present the number of brokers, correspondents and direct lenders readily available has dramatically diminished leaving chunks of a now growing market share available to those who get back in the game.
The question is, how will you be positioned as the market recovers and takes off again?
Commercialleads.net receives commercial finance requests for acquisition and refinancing of commercial real estate from industry partners through its internal network of more than 300,000 members. Activity in requests for financing for acquistiion and refinance of maturing loans has been steadily rising entering 2011.
With the economy showing signs of recovery and wall street / stocks doing well there is more liquidity coming into the CRE marketings now. For more than two years lenders were holding their cards and tightening their financial belts to deal with large numbers of at risk commercial loans.
As these loans mature and are taken our or default the total outstanding has decreased to the point most experts agree the view now is more of opportunity in purchasing distressed assets vs. risk of owning them.
Conclusion
Clearly now is the perfect time to get back in the game for all segments of the CRE industry to re-establish contacts and begin building a new pipeline of deals. Commercial Realtors are seeing more requests for acquisition deals while lenders and mortgage brokers are receiving requests for refinancing of maturing loans originally done between 2003 - 2007.
What ever your position in the market it would be wise to re-align your contacts and start easing back into the CRE market now.
CommercialLeads.net is the largest commercial real estate and finance marketing / advertising firm in the U.S.
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