URBANTEAM
URBANTEAM
Blog Article
The 2025 edition of CBRE's Canadian Real Estate Lenders' Report, published on February 25, 2025, provides an in-depth analysis of the commercial real estate lending landscape in copyright. The report synthesizes responses from 37 domestic and foreign lenders, collectively managing over $200 billion in commercial real estate loans.
Enhanced Competitiveness: Lender competitiveness is on the rise, with 70% indicating intentions to actively or very actively compete on deals in 2025. This marks the highest level of intended competitiveness observed in the past three surveys, a substantial increase from the average of 45% in 2023 and 2024.Focus on Purpose-Built Rentals: The purpose-built rental sector is poised for growth, as 73% of lenders plan to increase their budgets for this asset class.
Cautious Approach to Condo Development: Despite a slight easing in requirements, condo development loans remain challenging. Approximately 52% of lenders are demanding more up-front equity, and 36% are seeking greater deposit requirements and shorter payment schedules. Additionally, 68% of lenders require 60-79% pre-sale commitments for condo construction financing, posing a significant hurdle given the current weaker condo sales market.
Challenges in Property Underwriting: Uncertainty in underwriting property valuations has emerged as the primary challenge, as highlighted by 57% of lenders.
Overall, the report reflects a more optimistic outlook among lenders for 2025, with expectations of increased transaction activity and greater debt availability, despite ongoing challenges in specific asset classes and markets.
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