Still All to Pay For: New Sources of Commercial Real Estate Debt Are Starting to Emerge, but the Size of the Funding Gap Remains Intimidating
The financing landscape for European commercial real estate is undergoing a fundamental change. The first step of the change has already occurred, with a number of high-volume lenders that were previously active in the property market withdrawing, according to Cushman & Wakefield’s latest European Real Estate Lending Survey.
The survey of 78 leading global real estate finance providers found that the number of active lenders fell by 33 percent in 2011, as the banks continued their retreat and focused on the ongoing need to deleverage. Fewer than half of the lenders interviewed said that they would be willing to lend to new customers with whom they have had no previous relationship. Also, of the 36 lenders willing to lend to new customers, a significant majority currently imposes highly restrictive lending criteria, with some only willing to lend, for example, in central