Key Takeaways from the 2023 Western States CREF Conference

Our producers were present last week at the 2023 Western States CREF Conference in Las Vegas with many of the nation’s major commercial real estate lenders. Meeting with our lenders provided our producers with key insights into what the market looks like for commercial real estate financing. Continue reading below for our top takeaways from this event:

• Retail lending is back to full force not just for grocery-anchored centers, but all well-located retail assets with strong tenant mix and stable operating history before, during, and subsequent to the pandemic.
• The “hit ratio” for lenders is down this year as they are providing quotes and term sheets but few are converting to signed-up and closed deals. There is still a gap between borrower’s expectations and the terms lenders can offer.
• Bridge lenders are very active in this uncertain market.
• In a down lending environment, many are studying their competition and devising new programs or adjusting their current ones to where they see opportunity in the market.
• Lending “boxes” have compressed.
• Lenders sometimes will go “out of the box” if they feel they can get yield on a deal.
• Lenders understand it’s a difficult market but this is when relationships really pay off. Having a track record with a lender is invaluable in today’s market.
• Most balance sheet lenders want to put out longer-term money (10+ years) while borrowers want short-term in hopes of rate reprieve in future years.