CMBS lenders and construction lenders have slowed down substantially, but loans are still getting done.
CMBS and construction lending have been the two most impacted sectors during the pandemic. Lenders in these two categories have slowed activity significantly. In CMBS, the market had a lot of exposure to both the retail and hospitality markets. Construction lenders, on the other hand, are moving forward with extreme caution.
“The CMBS market has certainly been impacted by COVID-19, and although was on hiatus the last few months, new portfolios are now being assembled and expected to be securitized within the next 60 days,” Stephen Stein, managing partner at Tauro Capital Advisors, tells GlobeSt.com. “A large majority of hospitality loans over the last several years were originated by CMBS lenders and initially caused stress within this sector. As hotels have begun to re-open for leisure travel, we have seen the CMBS market begin to slightly rebound.”