Will Commercial Property Lending Survive as Federal Stimulus is Rolled Back?
Newsweek.com reports: In a recent article titled "On Our Own", Newsweek's interactive online edition explored what will become of the US economy's nascent recovery as stimulus funds provided by the US Federal Government dry up. A primary thesis stated, “If American businesses and consumers want to avoid a slowdown, they’re going to have to do it themselves…expansion can continue if the U.S. economy taps into…a capacity for innovation, resilience, and, most of all, an ability to ride the continuing wave of global growth.”
The field of commercial real estate was one of the largest beneficiaries of stimulus dollars, as the Treasury bolstered lenders and credit markets, which investors depend on, during the recession. As stimulus programs begin winding down, investors have less to fear than they think, believes Real Capital’s Global Chief Economic Dr. Sam Chandan. In the article, he stated as proof of the author’s thesis that several other major players are currently waiting on the sidelines, ready to pick up wherever the Feds leave off.
As American banks become more conservative lenders without the Treasury behind their checks, foreign banks are becoming more active. “Many of the largest loans, the large property financings that we’ve observed over the last few quarters, have depended on the extension of credit by international lenders that are active in the U.S.,” says Dr. Chandan. He went on to provide select information from Real Capital’s recent publications on Top US Lenders, including the share of loans currently being underwritten by foreign banks from Asia, Latin America, and Europe.
View the full article on Newsweek.com: Will Commercial Property Lending Survive as Federal Stimulus is Rolled Back?
Articles related to this topic:
US Seeking More Foreign Investors
Lenders Slow to Analyze Distressed CRE Loans
Looking For Lending
Global Real Estate Woes And Economic Bail-outs
Posted by: Nina Turner