Composition of Active Lenders Adapts to New Market Dynamics; Investment Activity Making Steady Recovery
Capital markets remain healthy with array of active lenders. As the nation progresses through the final months of the year, the lending landscape has vastly improved from the onset of the pandemic, which brought lenders and investors to pause as they assessed the impact of the coronavirus. Access to debt capital, though, has been far more abundant than during the global financial crisis, with the Fed taking extreme steps to shore up credit markets and ensure liquidity flows. Following the second-quarter uncertainty-driven investment slowdown, buyers have become increasingly active with more lenders in the market. While sales activity remains well below activity seen a year ago, transaction velocity climbed approximately 25 percent from the second quarter to third quarter with a shift in priorities to reflect evolving opportunities and risks.