Gantry, a leading commercial real estate lender, has reported steady growth in new loan production through the third quarter of 2023. Despite lower year-over-year volume compared to the record-breaking year of 2022, there is an increase in both volume and pace as we head into Q4. This can be attributed to a rise in rate locked transactions expected to close by the end of the year, upcoming maturities and price discovery for assets amidst higher interest rates.
According to Tom Dao, principal at Gantry: “Market conditions are normalizing and adapting to a new rate climate. Each quarter of 2023 has outperformed its predecessor.” He predicts that Q4 will be their strongest quarter yet with a promising pipeline already lined up for Q1 of 2024 due to maturity forwards. This trend is directly linked with near-term maturities and movement towards price discovery during this high cost-of-capital market cycle.
Dao also notes some concerns emerging in certain markets such as office spaces facing challenges with leasing and near-term maturities. However, Gantry’s portfolio continues performing strongly which instills confidence in CRE fundamentals across all asset classes where leverage remains conservative while sponsorship remains active.
