CMBS and construction lending have been the two most impactedsectors during the pandemic. Lenders in these two categories haveslowed activity significantly. In CMBS, the market had a lot ofexposure to both the retail and hospitality markets. Constructionlenders, on the other hand, are moving forward with extremecaution.

"The CMBS market has certainly been impacted by COVID-19, andalthough was on hiatus the last few months, new portfolios are nowbeing assembled and expected to be securitized within the next 60days," Stephen Stein, managing partner atTauro Capital Advisors, tells GlobeSt.com. "Alarge majority of hospitality loans over the last several yearswere originated by CMBS lenders and initially caused stress withinthis sector. As hotels have begun to re-open for leisure travel, wehave seen the CMBS market begin to slightly rebound."

On the construction lending side, lenders are taking a moreconservative approach. "We are seeing many banks and traditionallenders take a more conservative approach to their underwritingwhen it comes to construction deals. Lenders are more than everfocused on sponsorship, tenants and collections through thepandemic," says Stein.