Small Investor Lending Up Modestly In 2013: NAR Research
NAR Research Economist George Raitu has divined the tea leaves of the NAR Commercial Real Estate Lending Survey and found the small investor has it a bit better than last year. Also interesting were some comments about the big names in commercial RE data aggregation and how many NAR Commercial members might not see their activity reflected therein.
Capital A Little Easier To Find, Transactions More Stable
While 72% of survey respondents reported capital availability was tied up in stiff loan underwriting standards, 2012 saw 30% of respondents report a loosening of capital availability. Tied to this appears to be the declining rate of transaction failure due to financing .
The $2M Cutoff: Hidden Riches?
Most property transactions took place at the $2 million mark and below. As Raitu puts it, that suggests a blind spot in industry reporting:
The figures indicate that a significant segment of the commercial market is flying below the radar of the established data aggregators, such as Real Capital Analytics. In addition, commercial REALTORS® handled a wide range of properties, from free standing buildings and mixed use, to churches, restaurants and self-storage.
Presented below: the entire 2013 Commercial Real Estate Lending Survey from NAR: