Demand for C-PACE financing is set to increase as US cities introduce stricter environmental rules for real estate.
It is still early days for sustainable lending in the US, but the growth of C-PACE and green lending indicates the direction of travel.
The index was at 21.07% in November, up from 20.9% in October.
Industry participants say the market is still feeling the impact of the past two years’ volatility
Post Brothers lined up $312m in financing for the property. The transaction was the largest single-asset financing on a market-rate property in the US in more than 14 months.
The cost of insuring commercial real estate properties in natural disaster-prone areas rose 20% year-on-year in 2022, per an October report from BlackRock.
The Real Estate Capital USA Lending Barometer tracks non-securitized senior mortgage and mezzanine and preferred equity financings across markets and sectors.
Expectations are that there will be $5bn-$7bn of new conduit issuance in the fourth quarter, market analysts told Real Estate Capital USA.
There are limited opportunities and high barriers to entering the data sector market. That is not stopping institutional lenders and investors from trying to gain market share.
Spreads on new commercial real estate loans widened in October, new issue commercial mortgage-backed securities market as well as pricing from agencies.