The Best Ever CRE Show JF 3979: CRE Capital Flows, DSCR Constraints, and the Lending Pivot in 2025 ft. John Manning
Jul 27, 2025
Join John Manning, Executive Managing Director at Marcus & Millichap Capital Corporation, as he dives into the evolving world of commercial real estate lending. He reveals how borrower preferences are shifting towards CMBS due to competitive interest rates and attractive non-recourse loans. Manning also discusses the rise of debt funds in bridge financing and predicts a rebound in capital flows if new legislation encourages retirement investments in real estate. It’s a must-listen for anyone looking to navigate the complexities of today’s lending landscape!
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Lending Market Recovery Insight
- The lending market is gradually recovering with repaired bank balance sheets supporting lending activities.
- CMBS lending is surging due to borrower acceptance of current rates and availability of full-term interest-only loans.
CMBS Lending Advantages
- CMBS lending offers higher leverage and full term interest only financing, which appeals to borrowers.
- CMBS loans are less picky on asset quality but have less flexible servicing compared to insurance company loans.
Bank Lending Overview
- Banks offer shorter term loans (3-5 years), mostly recourse with personal guarantees.
- Banks don't offer interest-only financing and tend to be more selective on asset quality.