Even as lenders have gotten back into the market for commercial real estate debt sources, they remain choosy and stringent. At the upcoming Texas Multifamily 2026 in-person event set for August 13 in Dallas, a panel of lending experts will provide conference attendees with insiders’ perspectives on how deals are getting done. Here, Vic Clark, senior managing director with Lument, sets the stage for the “Capital Is Back, But on What Terms?” discussion.
Q: What has changed compared to a year ago in terms of borrower requirements, and in terms of borrower awareness of the current lending environment?
A: Deals are still very difficult and slow to process; no loosening of credit overall has occurred. Agencies are providing fewer waivers on small deals, and deals under $2.0 million are out of favor. Appraisal issues continue to creep in as values decline and cap rates rise. Rents have yet to fully stabilize in most markets. Concessions are at a peak in the oversupplied markets. Rates have continued to creep upward, and there is no relief in sight. I believe the difficulty and challenges have reached a point that we must be very close or at bottom.
Q: More lending sources have come back into the market—but has underwriting gotten any less stringent recently?
A: I believe underwriting standards have actually tightened up over the past twelve months given the market volatility and uncertainty that is hovering like a dark cloud over our industry. Every time I think the storm is about to break another unexpected market nuance slows things down again.
Q: Are there lending situations that you and your team will rule out due to the level of risk, or are you usually able to find ways of making the deals work?
A: Yes, but it is pretty rare. We will work on any deal that makes sense. Risk is manageable if the sponsorship is solid. If the sponsor has major issues and minimal liquidity, that quickly becomes the hurdle that is difficult, if not impossible, to overcome. We then advise the sponsor to bring in new partners to overcome and mitigate the issue. Solid and experienced management is more important than ever.
Q: What are the chief selling points for winning a borrower’s business? Have these changed as the lending arena has gotten more crowded?
A: We have built a long-term business founded upon our ability to navigate difficult issues and market turbulence. We put our clients first so they know without a doubt we will work to deliver reliable quotes and turn the quotes into closings. We believe in chasing every good deal and getting the deals done right. Our clients know they can fully rely on us to deliver for them. We strive to be a trusted partner always willing to go the extra mile.
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