Bridge lending will be more active this year, particularly as problems surface with maturing loans, especially CMBS deals. Once rates and pricing come down, expect even more activity and lenders returning to the market. Although, several factors could slow down bridge lending including rising rates and issues around the election. Look for life companies to be more active in bridge lending this year as a way to grab yield. More

C-PACE is positioned for continued exponential growth, especially as the commercial real estate sector deals with higher interest rates and economic uncertainties. The increase in C-PACE adoption — as evidenced by its expansion into new states and jurisdictions, as well as the enhancement of existing programs — underscores its potential as a viable financing mechanism. More

Manufactured housing communities (MHC) will be a favored property type amongst the agencies, life companies, banks, CMBS, debt funds and private money lenders. The level of interest in this space has vastly increased over the last few years. With office and retail difficult to finance and plenty of competition in multifamily and industrial, MHC has quickly become an attractive option. Similar to multifamily, the agencies provide substantial liquidity in this space, offsetting the reduced lending by regional banks, which have cut back over the past two years. There is a need for low-income affordable housing, which is increasing demand for renters and leading to a strong performance. Keep an eye out for new lenders entering the sector and watch for the CMBS players to be more aggressive this year. More