As some banks sit in the dugout amid late-inning economic concerns, alternative lenders are stepping up to the plate in commercial real estate.
While some systemic regulators might bemoan “say it ain’t so, Joe”, many are glad to have these “shadow banks” re-emerge. CBRE notes that alternative lenders have raised record amounts of capital for secondary financing and transitional property lending. And while commercial real estate underwriting should stay balanced in 2019, CBRE says, this infusion of capital could exert upward pressure on loan proceeds and underwriting standards.
