Would-be borrowers have to demonstrate that there is cash flowbeyond what is being financed to handle things that may happen,like cost overruns and pro forma shortfalls, a departure from yearsgone by when banks just underwrote real estate. "Everybody stillhas a ton of money to lend, but everybody is very concerned aboutthe investment," Barker tells GlobeSt.com. "'Many are called butfew are chosen' is a good battle cry for right now."

Office deals are scrutinized more than most, he says, with banksrequiring very low loan-to-value ratios and requiring strongsponsorship in the form of strong preleasing and big financialstatements. The hotel lending market is also pretty bad right now,with banks requiring "an extraordinary story" to give seriousfunding consideration.

Retail is also going to be more heavily scrutinized, whileindustrial and multifamily are still considered very fundable."Dot-coms don't vacate 20-foot-clear space with dock-high doors,"says Barker, and with multifamily "there is a very deep permanentloan market with the agencies (Fannie Mae and Freddie Mac)."

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