According to a new credit index from JLL, commercial real estate lending reached an all-time high in April, driven by strong demand for refinancing and significant loan placements. The index highlights a near-record number of lenders active in the market, including banks, private investors, and family offices, which has led to rising loan-to-value (LTV) rates.
Lauro Ferroni, JLL's head of capital markets research for the Americas, noted that investors are attracted to real estate due to the potential for higher returns compared to other investments and the desire to diversify their portfolios. Data centers are a key driver of this activity, fueled by advancements in artificial intelligence.
Despite the broader economic uncertainties, commercial real estate is seen as an attractive entry point for investors, especially as refinancing becomes more common among property owners reluctant to sell at lower values. While competition among buyers is increasing, it remains less dynamic than in the credit market.
JLL's report suggests that the gap between buyer and seller expectations is narrowing, paving the way for a more predictable transaction environment in the latter half of the year. Notably, demand in the industrial and logistics sector is strengthening, while multifamily demand is weakening due to oversupply issues affecting rent growth