Commercial real estate finance represents a significant portion of the capital markets. Between 1995 and 2007 commercial real estate finance was dominated by Wall Street, whether directly through lending, or by influence where virtaully all portfolio lenders were formatting their loan documents so that the paper could be sold by wall street into the secondary capital markets. This, coupled with concerns over other investment asset classes like the stock market, and an extended period of low interest rates created a virtual perfect storm for commercial real estate finance culminating at the top of the market in 2007 before the credit cruch of 2007 with high leverage (100% financing in many instances), low rates, inexpensive closing costs, and quick closings. For a decade it was citrually a borrower’s market and lenders were differentiating themselves with minutea that seems unimportant today in 2010. Today simply having a commercial real estate financing lined up puts one way ahead of the pack.
Financial Compound, an active commercial mortgage broker, has stayed abreast of the changes in commercial real estate finance and remains active in 2010 closing numerous transactions and working with a multitude of commercial real estate lenders.