MARKET UPDATE BLOG

2015 CREF Conference: 8 Things You Should You Know

February 5, 2015

The Mortgage Bankers Association of America recently held its annual commercial real estate conference in San Diego, CA. This is the industry’s biggest event, with every major player in attendance to strike deals and compile crucial market intel. After myriad meetings with notable lenders and brokers from around the country, here’s what we were able to gather about the commercial lending landscape right now.

1) Most industry veterans see that the U.S. economic recovery has established a stable foothold.
2) Interest rates are at historic lows, and there are few signs of inflation; rates should be low for a while.
3) Banks, CMBS lenders, and insurance companies all have a greater appetite for commercial loans in 2015 after a banner year in 2014.
4) Commercial loans are viewed as the solid investment right now by the lending community.
5) Underwriting for commercial real estate loans has remained conservative, which should prevent the kind of credit problems encountered in 2008/2009.
6) There is a high level of capital available in the U.S. economy.
7) Confidence in the commercial real estate industry is high.
8) New lenders are consistently entering the market.