Market dislocations shifting power balance towards lenders

Lenders are gaining the upper hand as well as the ability to build a stronger portfolio.

The trifecta of interest rate hikes, rising inflation and a potential market downturn means commercial real estate lenders have more latitude in selecting and originating new loans.

Over the past decade, historically low interest rates have contributed to a major expansion of liquidity in the commercial real estate debt markets, and also have given borrowers ample opportunity to negotiate advantageous terms with their lenders.