U.S. Capital Markets Glide Path to Clearer Skies

Smaller deals more likely to make it to finish line

Non-Multifamily Loan Sizes Pulling Back

Multifamily Bucking the Trend (Agency Lending Helps)

0% 10% 20% 30% 40% 50% 60% 70%

0% 10% 20% 30% 40% 50% 60% 70%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

<$10M $10M-$30M $30M+

<$10M $10M-$30M $30M+

• As lenders require more skin in the game (lower LTVs), they are also growing more conservative from a profile and loan-sizing perspective. • There is still traction in the non-multifamily (i.e., office, retail and industrial) deal space, but such traction is more limited based on certain price points; the larger the loan size (generally speaking), the greater the challenge in finding the right lending partner, particularly as uncertainty remains high through the next year or so.

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Source: MSCI Real Capital Analytics

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