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By Michael Gerrity | August 2, 2018
According to a new report by global real estate consultant CBRE, the U.S. commercial real estate lending market remains robust in 2018, despite financial market volatility and heightened trade tensions.
The CBRE Lending Momentum Index, which tracks the pace of U.S. commercial loan closings, kept pace with the previous quarter. Lending volume closed in Q2 2018 at a value of 202, relatively unchanged from 203 in Q1 2018. Compared to a year ago, June lending volume was down by 10.6%.
"The commercial mortgage lending market should remain favorable to borrowers for the balance of the year. Loan credit spreads remain tight and underwriting standards are stable. While there is some risk to an escalation of trade disputes, this has not yet influenced credit availability or pricing," said Brian Stoffers, Global President, Debt & Structured Finance, Capital Markets, CBRE.
"With the flattening of the yield curve, borrowers with a settled capital structure and long-term horizon may want to take advantage of long-term financing. With the flat curve, borrowers can add significantly to loan terms for little additional expense," added Mr. Stoffers. Click to read the full article.