Experts at the Mortgage Bankers Association’s Commercial/Multifamily Finance Convention & Expo, held in San Diego earlier this month, predict an increase in commercial real estate lending volume for 2024 compared to last year. However, they also acknowledge some challenges that may persist from 2023 and temper their expectations accordingly.
According to Adam S. Finkel, co-founder and managing partner of Tower Capital, these challenges include uncertainties about pricing discovery and underwriting values such as cap rates and rents.
In a video featuring insights from industry professionals including David Solotov of AllianceBernstein; Jonathan Lee of Colliers; and Joe Derhake of Partner Engineering & Science Inc., it is noted that loan volume will likely be better than 2023 but not as strong as previous years.
Overall, experts remain optimistic about the future growth potential for CRE lending despite some potential obstacles.
