Top Takeaways from CREF 2020

Our team attended the 2020 CREF MBA in San Diego this past week and sat down with lenders to discuss the upcoming year and details of their programs. Below is a list of the top takeaways we had:

• One of the biggest takeaways from the 2020 CREF MBA in San Diego is that lenders are still tremendously optimistic about the volume they expect to do this year. It was rare to hear someone had a down year, is lowering their goal, or is cutting back on certain programs.
• Nearly every lender in the country is flush with capital and looking to exceed last year’s production. In order to do this, many are getting creative – they’re expanding their box by upping their limits on proceeds or unveiling new programs with things like more flexible prepayment (1% for the last 9 years of the loan term). Combined with these low treasuries, it’s a great time to be a borrower.
• Apartments and industrial remain the preferred product types followed by office and retail. There is still money for hospitality and single-tenant deals, but lenders are being increasingly selective.
• Lenders are currently very aware of where other lenders’ interest rates are and where they fit in the market to strategize how they want to compete.
• In general, we anticipate continued production in 2020 on par with last year; with the possibility of uncertainty related to the presidential election in Q4.