Volatility in the broader market has begun to seep into the underwriting environment, with lenders more cautious and conservative than in previous years. Active lenders include local, regional and national banks and insurance companies, with sentiment driven by the high-profile decline of big-box retail. As a result, lending on tertiary assets and locations remains tight, while net leased assets and premier mixed-use structures are highly desired by lenders. This has created a two-tier market structure, with loan-to-value (LTV) ratios in the 55 to 75 percent range depending on borrower, asset and location factors. Mezzanine and bridge loan structures have been more frequently used in this environment, with owners undertaking capital improvements at higher leverage ratios using short-term debt before refinancing upon completion.