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CBRE: Non-Banks Boosted CRE Lending in Q4 2020

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CBRE’s latest Lender Momentum Index for Q4 2020 showed a stark improvement over the prior quarter, ending at 221 in December, a 38.2% increase. Despite this increase, the Index remained 24% below its pre-pandemic level just a year ago in February 2020.

According to CBRE, volume for non-government agency commercial loans in Q4 2020 was led by alternative lenders, which include debt funds, finance companies, and mortgage REITs. This group accounted for 36% of non-agency loan closing volume in Q4 2020.

“Capital markets helped bolster commercial mortgage lending at year-end as equity prices rose and corporate loan spreads tightened. With lending markets anticipating the effects of additional government economic stimulus on growth and inflation, Q4 2020 saw increased participation by alternative lenders and life companies compared with Q3,” said Brian Stoffers, Global President of Debt & Structured Finance for Capital Markets at CBRE.

CBRE asserts that higher levels of liquidity, tighter credit spreads and a modest loosening of underwriting standards contributed to a sharp improvement in commercial real estate lending momentum in the last quarter of 2020.

For a closer look at CBRE’s latest Lender Momentum Index, click here.

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