CMBS

Disruption is impacting warehouse lenders’ ability to originate loans and hit targets.

Borrowers are wary of locking in long-term fixed-rate financing due to concerns about the impact of rising interest rates.

As the covid-19 pandemic winds down, the Commercial Real Estate Finance Council gears up to face another generational crisis. 

CIO Rob Allard says infra and energy rank high alongside CRE debt priorities as issuers enter a more fractured environment.

An office to life sciences conversion could be a new lease on life for an old property, but lenders need to take into consideration the underlying risks associated with the tenants leasing the space. 

Still, Trimont’s chief commercial officer Mitchell Hunter believes there are reasons for optimism.

Several bridge and construction lenders have already discussed a halt in lending for the near-term.

The repricing in global financial markets since Russia’s invasion of Ukraine in February has put upward pressure on financing costs in Europe’s real estate sector.

The firm’s quarterly momentum index also shows CLO issuance was up $6.3bn in Q1 2022 compared with the same period last year.

The conduit market has also seen strong growth so far this year, but this may not continue.