Lending Experts Discuss the Future of CRE Financing

Lenders have capital to deploy, but the global economic and political landscape will continue to complicate commercial real estate financing for several years, according to the commercial financing session panelists who shared insights with attendees at CCIM Live!, the CCIM Institute’s fall conference in Las Vegas. “We’re being much more aggressive than we were a year or two ago from a financing standpoint,” said John Manganiello, senior vice president and market executive for Bank of America Merrill Lynch.

Panelists named the multifamily and industrial sectors as prime targets for capital deployment. Alternative capital sources have also begun to play a bigger role in recent years. “We’re focusing on qualified credit unions -- those that want to lend and can lend money,” said William McCluskey, founder and CEO of Willow Capital Group. “We can be more flexible in terms of target markets, since a local credit union knows the market.” Richard Podos, founder of Lance Capital LLC, also cited the importance of credit tenant lease financing, which focuses on tenants’ credit quality and the lease structure to determine a cost of borrowing.

Ultimately, investors and capital sources are “waiting to exhale” when the upcoming U.S. presidential election relieves some of the uncertainty currently affecting the market, said Michael Ortlip, senior vice president with Grandbridge Real Estate Capital.