Strong Demand for Industrial Space Has Lenders Competing for Loans
August 4, 2017 | Patricia Kirk | NREIOnline.com
With industrial vacancy under 2.0 percent in many U.S. markets and rents continuing to rise, this asset class is the darling of both investors and lenders. Attorney Steven J. Lurie, a partner in the Los Angeles-based law firm of Greenberg Glusker who represents investors and developers in real estate deals, says, “This is a hot sector. Lenders like it, so there’s a lot of competition for deals, which means good terms for borrowers.”
“I’ve closed loans in areas throughout California, as well as Colorado, Oregon and Pennsylvania and haven’t had a problem securing financing anywhere,” he adds.
At some point, lenders may overreach, Lurie suggests, but he notes that with the continued increase in e-commerce sales, the industrial sector looks strong for the foreseeable future.
