As the year is wrapping up, all eyes are on the rollout of the vaccine and how the second wave of restrictions and potential lockdowns will impact property operations (i.e. collections and occupancy) and ultimately property values. As the CPPI All Property Index, which is a blend of prices across all property types, is down 8% since Covid began, senior lenders (primarily banks, life cos, and agencies) are continuing to be selective with new originations, while being more aggressive with Sponsors and locations the know well.

However, debt funds and REIT’s are picking up some of the slack on the transitional and development deals. The general consensus among lenders is that underwriting and ultimately lending will loosen up the second half of 2021, assuming a successful rollout of the vaccine. As with anything, patience is key.