CMBS

An office to life sciences conversion could be a new lease on life for an old property, but lenders need to take into consideration the underlying risks associated with the tenants leasing the space. 

Still, Trimont’s chief commercial officer Mitchell Hunter believes there are reasons for optimism.

Several bridge and construction lenders have already discussed a halt in lending for the near-term.

The firm’s quarterly momentum index also shows CLO issuance was up $6.3bn in Q1 2022 compared with the same period last year.

The conduit market has also seen strong growth so far this year, but this may not continue.

The practice, formerly a niche financing strategy to upgrade properties, is set to become a driving force in ESG lending.

An inverted yield curve typically precedes a recession.

Lenders are starting to better understand the dynamics of energy retrogrades and giving credit for this in pricing.

The transition has been largely hassle-free because much of the work was completed behind the scenes and in staggered stages.

One potential stumbling block for the conduit and broader CMBS market, however, could be the impact of higher interest rates.