Commercial property borrowers can look forward to another good year in 2013!
Money is cheap and plentiful. Yields are low but for life insurance
companies and other lenders looking to make long term fixed rate investments,
commercial loans offer relatively high risk-weighted returns versus corporate
bonds, government bonds and other fixed income assets.
Banks, CMBS originators, the GSE’s and life insurance
companies all have big appetites for 2013.
 |
| 2013 California Correspondent Lenders Targets |
The banks are now generally healthy and needing to lend. The CMBS world is achieving pricing that is
getting near that of the life companies.
New issues of CMBS bonds are selling well and the conduits are beginning
to use some of their old underwriting tricks.
For deals that need max proceeds once again they are the lenders of
choice.
Each of Newmark Realty Capital’s correspondent lenders
is either holding or increasing their production goals for 2013 over 2012.
Most of our life insurance commercial
mortgage departments are being told by their Chief Investment Officers, bring it on! If the mortgage
department meets its production targets for 2013 early in the year those
targets will be raised. We do not expect to see any life insurance
lenders going out of the market in 2013.
Targets for 2013: Click here to download a copy of Newmark’s Correspondent Lenders in Northern California and their 2013 programs.
Feel free to call me for more details.
Feel free to call me for more details.
Looking back on 2012
These higher targets come after a strong performance on our industry last year. Mortgage
Banker’s Commercial Property Loan Production for 2012 was up 24% over 2011.
| 2011 | 2012 | % Change | |
Life Company & Pension Funds
|
$49 B
|
$49 B
|
0.00%
|
GSEs & FHA
|
$58 B
|
$82 B
|
41.40%
|
CMBS
|
$22 B
|
$32 B
|
45.40%
|
Other
| $55 B | $65 B | 18.20% |
| Total | $184 B | $229 B | 24.40% |
