Cost of Finance Will Rise Pending CMBS Loan Maturities Hotels Out, Industrial In - The largest decline in the outlook for lending volume was for the hotel sector, where 46% of respondents anticipate an outright drop in volume during 2016.
- At the other extreme, just 9% of lenders expect a decline in lending against industrial properties.
- Lenders appear split in their assessments of the multifamily lending outlook with 40% of respondents project an increase in apartment lending volume during 2016, higher than for any of the other property types.
- On the other hand, 22% expect a decrease in volume, second only to the hotel sector. Only 38% believe that volume will be unchanged.
- The report speculates that the split may reflect differences in competitive positions.
- Expectations of underwriting tightening are strongest in the hotel and multifamily sectors.
- Lenders indicate that standards may ease for industrial properties but even in this case the net share projecting easing standard is just 3%.
- The largest decline in the outlook for lending volume was for the hotel sector, where 46% of respondents anticipate an outright drop in volume
- At the other extreme, just 9% of lenders expect a decline in lending against industrial properties.
- Lenders appear split in their assessments of the multifamily lending outlook with 40% of respondents project an increase in apartment lending volume
- On the other hand, 22% expect a decrease in volume, second only to the hotel sector. Only 38% believe that volume will be unchanged.
- The report speculates that the split may reflect differences in competitive positions.
- Expectations of underwriting tightening are strongest in the hotel and multifamily sectors.
- Lenders indicate that standards may ease for industrial properties but even in this case the net share projecting easing standard is just 3%.
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