The insurance companies are currently providing the best, most attractive liquidity for industrial real estate assets in today’s uncertain economic times. Period. Here’s why:Steady source of liquidity. Insurance companies reinvest monthly premiums from policy holders into several fixed- income assets. The investment target allocations for these policy premiums have historically been ~40% stocks, ~40% bonds, ~15% commercial real estate (mainly focused on direct commercial mortgage loans) and ~5% alternatives. Despite the lost liquidity within the commercial banks – due to a shrinking deposit base, lack of loan payoffs, and increased regulation – monthly premiums paid by insuran...

As seen in the Colorado Real Estate Journal May 3, 2023.The debt markets continue to get more challenging to navigate. Interest rate hikes and macroeconomic factors affect each lending source differently, resulting in an inefficient and confusing debt marketplace. This impacts the entirety of the industry, as debt is associated with almost every single commercial real estate property. The majority of commercial real estate professionals have other things to do during the week than keep tabs on the lending appetite and underwriting metrics for hundreds of lenders. Then there’s us. The lucky ones. Mortgage bankers.Here’s one mortgage banker’s perspective on what’s going on in th...

The capital markets have experienced a rapid transformation over the course of 2022, bringing attention to new themes and trends that continue to unfold. Rising rates, economic uncertainty and record-setting inflation continue to impact the marketplace, including lender appetite. While we don’t want to present a pessimistic outlook, as there is still plenty of demand for mortgages, it is important to be transparent and note the shifts that are taking place. Here are some of the themes and trends we have noticed in this quickly changing environment.What does the lending landscape look like right now? Life companies, banks, conduit lenders and debt funds are asking themselves th...

In reading the Quarterly Mortgage Banking Association’s (MBA) Q1 2022 loan originations report, readers would expect a thriving economy in 2022 and predict another year of record low interest rates, especially for owners of industrial real estate.  Some of the headline stats:·     Commercial and multifamily loans up 72% compared to first quarter 2021·     Loans on industrial assets increased by 145% compared to first quarter 2021 (highest increase per product type)However, the global economy and lending universe have quickly changed, and a large portion of the positive origination gains in Q1 2022 is from loans sourced in Q4 2021.  We have officially entered the long-a...