Several members of team Finneo attended Toronto Real Estate Forum with over 3,000 attendees. Here are some key themes as they relate to CRE Finance:
1. Every lender wants to lend on "Beds and Sheds" in major markets
2. Properties are not selling. Bid/Ask gap is too wide
3. Lots of capital available for insured multi-family lending
4. Large banks and lifeco's have significantly cut back on leverage but remain relatively cheap source of capital
5. Debt (100+) in Canada are competing fiercely for product and are now getting clients that they previously could only dream of
6. There is very little appetite for Office Debt Capital, especially in CBD markets
7. Despite the doom and gloom, the lenders have been very busy doing deals this year especially in the opportunity funds and debt funds arena
8. Several equity players have also shifted to doing more mezz lending recently as they are unable to meet seller expectations on the CAP rates
9. Rates are expected to fall by Q4 2024 by as much as 250 bps
10. The post Forum parties were in full swing and some of the hosts went "All Out" indicating continued exuberance in confidence in the market.
Overall Theme: This Too Shall Pass!
About Finneo:
Finneo is the commercial real estate industry’s leading technology platform that transforms how strategic decisions are made and executed across the debt lifecycle. In 2020, Finneo revolutionized the commercial real estate industry’s financing operations with what is now Finneo LMA (Lender Matching Algorithm). Today, Finneo is the best CRE Debt Data and Tech Enabled Advisory platform in the industry and delivers market insights and solutions for everyone in the commercial real estate financing world to fuel their investment and asset strategy.