LOS ANGELES—Despite an extremely competitive lending environment,leverage today is nowhere near where it was justprior to the recession, said panelists at RealShareNational Investment & Finance here yesterday.Panelists said the answer to whether we are in a lending bubble isan emphatic no.
In addition to leverage being lower than before the recession,“interest rates are lower than they were in 2005,” saidWayne Brandt, managing director, nationaloriginations director, real estate capital markets forWells Fargo Bank. He did caution that there ismore junk-bond issuance now, which is something towatch.
“CMBS Is Back” panel moderator Gary Tenzer,principal and managing director of George SmithPartners, compared today's lending environment to “drivingwith one foot on the accelerator and one foot on the brake at thesame time. There's excitement, but it's not the same level as in2005 or 2006.”
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
