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LOS ANGELES—As lending increased in the third quarter, so didaggressive underwriting. The underwriting on loans tracked by CBRECapital Markets in the third quarter posted declines inunderwritten cap rates and debt yields, marking a sharp departurefrom trends seen in the second quarter.
The increased aggressiveness was most apparent in the percentageof interest-only loans. The percentage of loans carrying eitherpartial or full interest-only terms rose to 67.9%. "We saw moreinterest only loans," Brian Stoffers, global president of Debt& Structured Finance for Capital Markets at CBRE tellsGlobeSt.com. "It reached almost 68%, which is a new high."
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
