Law Office of Henry B. LaTorraca Civil Trial Attorney

Strong financing market expected to continue in 2017

Commercial real estate developers in California understand that financing is a key component of their business. Changes in the financing market can significantly impact prospects for new projects. Over the past year, the financing market has been strengthened by factors like low interest rates, rising real estate values and increased activity in the commercial real estate market.

A report that was published by the Mortgage Bankers Association showed that commercial real estate loans originated in 2016 exceeded $500 billion. Many analysts are predicting that the robust financing market is going to continue into 2017. Though the Federal Reserve is expected to raise interest rates somewhat this year, the increase is not likely to be so significant that it hinders lending activities. About $395 billion worth of maturing loans could lead to a rise in refinancing activity in 2017.

Others factors that could impact the financing market this year are lender competition and the availability of capital. Analysts expect that the financing market will be strengthened by increased competition among lenders due to looser lending regulations imposed by the new presidential administration. Low unemployment rates are also expected to have a positive impact on the financing market this year.

Coordinating financing sources for a large commercial real estate project can be a complicated process for some developers. A commercial real estate attorney can often be of assistance by reviewing the term sheets submitted by prospective participants and identifying any potential issues that could cause problems in the future. The attorney could also suggest less-traditional sources of financing such as crowdfunding for developers that are just starting out.

No Comments

Leave a comment
Comment Information

Creative Solutions for Complex Legal Issues

Map email us for a response

Contact the Law Office of Henry B. LaTorraca

Prospective clients are invited to contact attorney LaTorraca at 562-216-2942 for an initial lawyer consultation to discuss their legal matter.

*AV Preeminent is a certification mark of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the judiciary. Martindale-Hubbell ratings fall into two categories - legal ability and general ethical standards.

Contact Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Follow Henry B. LaTorraca Via Social Media

400 Oceangate Suite 700 Long Beach, CA 90802-4306 Phone: 562-216-2942 Fax: 562-216-2943 Map & Directions

facebook google plus LinkedIn directions