Report from the Western States Conference

We attended the recent 17th Annual CMBA Western States Conference in Las Vegas, known as the seminal annual gathering for the commercial real estate industry. Bankers, brokers and lenders of all types meet to make deals, tell bad jokes, and try their hand at forecasting the market’s trajectory over the next year. After walking the casino floor countless times and taking myriad meetings, here’s what we were able to glean about the state of the commercial lending landscape right now.

This year’s event was abuzz, with attendance up at over 1,000 industry wonks from across the country. The overall sentiment was positive, with liquidity and competition being the two major takeaways. There is simply more money in the loan market right now than there are properties to finance, which means borrowers are in the driver’s seat and lenders are being forced to bid on high quality financing assignments.

The surge in demand for these loans has given rise to more competitive quotes, as well as innovation in loan offerings. Lenders who have previously focused solely on traditional permanent loans are now expanding their platforms by offering bridge, construction, and equity programs. Look for this trend to broaden throughout the year as lenders look for novel ways to secure business in an increasingly competitive landscape.