C-PACE is positioned for continued exponential growth, especially as the commercial real estate sector deals with higher interest rates and economic uncertainties. The increase in C-PACE adoption — as evidenced by its expansion into new states and jurisdictions, as well as the enhancement of existing programs — underscores its potential as a viable financing mechanism. More

Manufactured housing communities (MHC) will be a favored property type amongst the agencies, life companies, banks, CMBS, debt funds and private money lenders. The level of interest in this space has vastly increased over the last few years. With office and retail difficult to finance and plenty of competition in multifamily and industrial, MHC has quickly become an attractive option. Similar to multifamily, the agencies provide substantial liquidity in this space, offsetting the reduced lending by regional banks, which have cut back over the past two years. There is a need for low-income affordable housing, which is increasing demand for renters and leading to a strong performance. Keep an eye out for new lenders entering the sector and watch for the CMBS players to be more aggressive this year. More

Life company lending will be elevated versus 2023, but lenders will still struggle to meet their goals. The pipeline has been flowing so far this year, although the deal flow of the acquisition market remains light and will limit lending. However, cap rates are moving up and more acquisition volume later in the year will help get capital moving. Most LCs are averse to doing office, which is also limiting originations. LCs will continue to be conservative with terms, although they are being forced to compete on price in order to get money out the door. More