Current conditions within the commercial real estate capital markets leads to excellent borrowing opportunities

With more commercial real estate lenders and excess capital chasing too few quality transactions, 2005 is poised to become one of the strongest borrower's markets in recent history.

The dwindling investment performance of other asset classes at the same time commercial real estate investment performance is experiencing record returns has caused a rotation of capital into commercial real estate the likes of which has not been seen before.

This excess flow of funds looking for a home in commercial real estate capital markets has created a disequalibrium between supply and demand that has real estate owners/developers smiling ear-to-ear.

The competitive feeding freenzy that has evolved is causing lenders to have to sharpen their pencil to win business. It is not uncommon to see lenders climb the leverage curve at very thin spreads in order to secure business.

Authored by Mike Myatt
Executive Managing Director of Pacific Security Capital
Contact Pacific Security Capital today 1-800-844-6085