Commercial Investment Real Estate March/April 2013 - Page 50

CCIM CONNECTIONS Financing’s Future Since Richard L. Podos, CEO and president of Lance Capital in New York, appeared on the Commercial Financing panel at the CCIM Live! conference last October, the presidential election and fiscal cliff have come and gone. Have the intervening months tempered Podos’ unf inchingly realistic outlook for the lending environment? Not much. “Commercial lending in general has been slowly getting better,” he explains. But, “T e real problem, in my mind, begins with leasing. T e standof between the right and lef and the current administration’s new regulations have the business community unsettled.” And, in turn, lenders are concerned about occupancy, particularly in smaller markets, which could take three to four years to come back, he says. “We hear in the media about the mortgage maturities coming in 2015,” Podos says. “But at the same time, we’re going to see 50 percent of [mostly of ce and industrial] leases expiring. How can lenders be certain these tenants will renew, or not reduce their footprint or reconf gure space, which requires a large tenant improvement contribution?” Lance Capital specializes in credit tenant lease f nancing, which provides financing for TI based on tenants’ credit. So it, too, may be af ected by the prevailing uncertainty. “It’s going to be a very challenging time for all of us,” he says. However, “For CCIMs — who understand leasing, lending, and investment — it’s a great opportunity,” Podos adds. “By virtue of their training, CCIMs are the best candidates to address those multiple silos.” 48 March | Arpril | 2013 Commercial Investment Real Estate