MBA CREF | Top Takeaways

The following are Barry Slatt Mortgage Company’s top takeaways from this week’s 2018 Mortgage Bankers Association (MBA) Commercial Real Estate Finance Conference in San Diego, CA.

1. The market for debt and equity is very liquid.
2. Real estate in most major markets of the country are considered to be healthy.
3. Recent volatility in the stock market is mainly an equity market correction and has not really affected the CMBS market or other facets of the loan market.
4. While the 10-Year Treasury (the benchmark index for most fixed rate loans) has risen dramatically over the past month, spreads have moved downward. Consequently, most 10-year fixed rate loans are being made in the 4.0-5.0% range.
5. Recent tax law changes will be positive for the commercial real estate industry.
6. Most insurance companies have higher allocations for commercial real estate loans in 2018 than they did in 2017.
7. The CMBS market is stable and lenders are willing to compete for business.
8. Bank lenders are active but concerned about losing market share with short term rates moving up.
9. Agency lenders are seeking high quality multi-family loans in all markets.
10. There are many active funds seeking investments in equity, bridge debt, mezzanine debt, and construction lending.