There’s been an unmistakable rise in expectations among commercial real estate lending professionals about the forthcoming year, amid signs of a gradually, if grudgingly, improving economy. To explore these sentiments and check the industry pulse, Scotsman Guide Media and Small Business Finance Institute conducted a survey among lending professionals to determine their outlook for commercial real estate lending in 2014.
The organizations’ 10-question survey sought mortgage professionals’ evaluation of their business volume in 2013 as well as their views of the prospects that 2014 might have in store. Surprisingly, the results demonstrated a stark contrast between the two years in the eyes of mortgage professionals and lenders. Although only 29 percent of respondents said they were satisfied with their dollar loan volume in 2013, a whopping 82 percent expected this year to bring an increased dollar volume, and 81 percent expected a higher number of clients.
More than 64 percent of survey respondents said they expected that the percentage of loans funded (compared to loan applications) will improve in 2014.
Quick read: sentiments are riding high on 2014 after five years of wandering in the deal- flow desert. Seasoned lenders are hungry for a return to better days when their telephones were ringing with impatient applicants and new business referrals.
The survey details found plenty of concerns – real estate values, underwriting standards and the appetite for more business capital among business owners. But those are questions that will be left up to tomorrow. Today, everyone’s ready to get down to business.