"Although construction projects are at an all-time low, thelong-term lenders, such as life insurance companies and Wall Streetconduits, are looking for good loans on existing properties and arefunding them at historically low interest rates," David J. Patten,president of Interlachen Financial Group in suburban Winter Park,FL, tells GlobeSt.com.

Long-term, fixed-rate loans on anchored retail, industrial andoffice properties range from a high 5% to low 6% with multifamilyloans in the mid-5% interest range, says Patten, the income statechapter president of the 10,800-member National Association ofOffice and Industrial Properties.

With average industrial and office vacancies in the mid-teenrange, long-term lenders are "scrutinizing the rent rolls andoperating statements more carefully and looking at the status ofthe comparables, as well," he adds.