“Rates are historically low, but who’s lending?”

Despite uncertainty and volatility earlier this year, the capital markets are relatively stable and healthier than originally anticipated at the beginning of the pandemic.

There are ample capital sources available and sectors such as the CMBS market that were most impacted earlier in the pandemic have returned. Several banks and credit unions have begun looking at new lending business again.

Most lenders continue to be much more conservative with lower proceeds, higher reserve requirements, and continued focus on sponsors’ historical performance and track records. Financing for hotels, retail, and even some office remains challenging.