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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