CRE debt market shifts as banks pull back, funds step in

By Alexander Saeedy
15 Nov 2018

Commercial real estate financiers at a conference in New York on Thursday discussed the changing nature of their business, which has seen many large banks shun “commoditised” lending for commercial mortgage-backed security (CMBS) deals while debt funds use repo and warehouse financing to gobble up a larger slice of US commercial real estate lending.

“We end up working twice as hard for roughly half of the profit,” said David Lehman, global head of real estate finance at Goldman Sachs. “Essentially it means we’re spending less time on commoditised lending and working on bespoke deals.”

That trend takes place in a struggling market ...

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