Commercial Investment Real Estate

JUL-AUG 2017

Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.

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July | August 2017 35 Despite a slight decrease in total U.S. commercial real estate lending volume from 2015 to 2016, banks and alternative funding sources continue to lend aggressively. The decrease refl ects the fewer number of acquisitions to f inance as investors become more cautious. A variety of lend- ers, however, remain bullish and point to the low loan delinquency rates, which are at the lowest lev- els in more than a decade. Coupled with a new administration promising to roll back regulations, the industry continues to be robust, according to several lending profession- als who hold the CCIM designation. Commercial Investment Real Estate discussed the challenges of commercial real estate fi nancing with four CCIM designees who are active in the lending industry: • Elizabeth Braman, CCIM, chief production offi - cer, RealtyMogul.com, Los Angeles; • Darin Davis, CCIM, senior vice president of com- mercial real estate, Bank of Albuquerque, Albu- querque, N.M.; • Daniel Matz, CCIM, associate director, Ready Capital Structured Finance, New York City; and • Heather Olson, CCIM, assistant vice president, Walker & Dunlop, Atlanta. CIRE : Describe the state of commercial real estate lending in your market today, based on your experience and your bank's participation. Elizabeth Braman: We are a nationwide lender and investor, so we monitor markets nationwide using signifi cant amounts of macro- and micro-level mar- ket data. We are seeing that the six gateway cities — New York, Los Angeles, San Francisco, Chicago, Boston, and Washington, D.C. — have recovered above the pre-fi nancial crisis peak levels. This rate of growth would indicate pricing that is approaching peak, or has peaked, in these major markets. In contrast, asset prices in secondary mar- kets are recovering at a more reasonable rate, consis- tent with national demand fundamentals. Jason Hosking

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