Commercial Lending Market Roundup: Q2 2017 | Riverdale Funding

Commercial Lending Market Roundup: Q2 2017

Jul 19, 2017

It’s official: We’re halfway through 2017. Just as much as we’re looking to the future, we’re also recapping on the incredibly busy first two quarters for the commercial real estate market. From early predictions onward, this year has seen several trends that have substantially impacted commercial lending.

From the Trump administration’s regulation-averse stance to elections abroad, and changes in interest rates and consumer habits, Q1 and Q2 in 2017 have provided plenty of reasons for investors and brokers alike to tune in. A few months ago, we recapped just a few of these events in our Commercial Real Estate Market Review & Outlook. We provided crucial outlooks on major market sectors, broke down the key events affecting the financial industry and commercial loans.

For Q2, we’ve taken a slightly different approach to providing the key updates you need with a greater focus on in-depth analysis, so we’re thrilled to announce our Q2 Market Roundup.

Is Commercial Real Estate at Its Peak in 2017?

This question has been on the minds of commercial real estate investors and brokers alike, and it’s the central question behind our report.

Experts have kept a relatively positive outlook on 2017, but already analysts have begun to change their tune, suggesting that this year could mark the end of the bull cycle. The truth of the matter is that the commercial real estate market is reaching an environment it hasn’t seen for a decade or more. This unfamiliar territory certainly provides good reason for caution, as this unique combination of market forces—rates, regulations, and an economy all in flux—still may have some surprises in store for us.

Our analysis seeks to dig into this question and understand it by examining various CRE market elements as they’ve played out in Q2-2017.

Summing Up the Q2 Commercial Lending Market Roundup

Our report is broken up into six total sections:

The first section poses our central question, and gives an overview of analyst sentiment and the commercial real estate market in Q2 of 2017. The second section breaks down the second quarter by its major headlines—including economic statistics, the Fed’s rate hike, and the potential replacement of Dodd-Frank—offering the details and major impacts of each.

Our third section examines the Hotel sector; specifically, how this sagging sector is beginning to adapt to competition from travel and hospitality services such as Airbnb. The future of retail space takes prominence in section four of the report, with a key focus on the shifting consumer preferences related to online vs. brick-and-mortar shopping.

We forecast other key commercial real estate sectors in section five before analyzing the outlook for commercial lending in the second half of 2017 and beyond. With traditional lenders still in a process of tightening their standards, what could a slowdown mean for the commercial lending sphere?

A Rosy Outlook

Many questions are still swirling for commercial real estate investors, but regardless of the updates we see in Q3 and Q4 of 2017, the best tool you’ll always have is research. Consulting with a financial advisor and gaining a breadth of knowledge can help fill in the gaps so you can continue to make financial decisions that are truly right for you – in and out of the commercial real estate market.

With that said, we hope you’ll take our Q2 Market Roundup as a leaping point. We’re always here as a resource, and helping our borrowers and commercial mortgage brokers like you is always a pleasure. We’ve thoroughly poured through data (cited within for further reading), and you can download the full report at the link here.

We’re excited for you to dive in.