The COVID-19 pandemic brought widespread economic disruption, but real estate capital markets have fared better than most expected, particularly when compared to the Great Financial Crisis, according to Malcolm Davies, principal and managing director at George Smith Partners (GSP) and Zack Streit, senior vice president at GSP.
“Although many lenders reduced lending activities in March, April and May, many have returned to the market and are looking to make new loans albeit more selectively than pre-COVID with respect to geography, asset type as well as leverage, rate and structure,” noted Davies.
According to Davies and Streit, real estate financing is available in the current environment, particularly when compared to March and April.
“The most dramatic rebounds in lending have been in agency lending, debt fund bridge and construction lender and CMBS lending with respect to multifamily, industrial, self-storage and some office assets,” noted Streit.
