Commercial Lending Eases Off as Underwriting Turns Conservative


Commercial mortgage markets navigated a difficult period in Q2, as lenders were selective in their deal and property type choices. While broad liquidity was restored to the market and multifamily agency and certain industrial deals were bright spots, other sectors suffered from selectivity and the withdrawal of CMBS and alternative sources of capital.


We anticipate that commercial mortgage markets will remain muted over the near-term, especially for retail and hospitality properties, as well as value-added deals, which face the greatest underwriting challenges. In addition, underwriting will likely remain conservative due to current economic conditions.