With regulations more so than economics curbing construction lending, some multifamily and commercial developers are taking matters into their own hands. Bisnow's Champaign Williams explains:
While traditional lenders continue to tighten their credit standards and take on fewer CRE loans, developers are expanding their businesses to include debt to fund their peers’ projects—and experts do not see this trend slowing, even with talks of President Donald Trump rolling back regulations.
“Banks are still lending, but not quite at the same rate and pace due to regulation,” Cole Schotz Real Estate Special Opportunities group member Rab Nalavala said. “There are a series of alternative lenders that have come about [as a result].”