CREJ - Retail Properties Quarterly - February 2015
As we kickoff 2015, commercial real estate continues to display a healthy performance. While market strength alone may seem like a good enough reason for institutions to invest in commercial real estate, the capital market has created additional incentive. Much like last year, as interest rates remain low, institutional portfolio managers are finding commercial real estate yields attractive compared to other asset classes. With the supply of capital exceeding demand, commercial real estate lending is expected to be vigorous this year, and retail property owners are fortunate to have a wide variety of financing options available. Even in this highly competitive lending environment, lenders remain selective. Appetites differ greatly from lender to lender, especially within the retail sector. Retail owners who seek financing in 2015 need to know what lenders are looking for. After all, the most competitive loan terms usually come from the lender that most wants to win the business.