CMBA Western States: Key Takeaways for CRE Finance in the West
In a cycle where debt liquidity remains both abundant and accessible at the same time rate volatility is resetting underwriting parameters, the California Mortgage Bankers Association (CMBA) Western States conference offered Gantry’s production teams the opportunity to intimately engage with lenders and set the stage for the months ahead. Here are some key takeaways as we head into the homestretch of 2026 looking to 2027 and beyond.
Gantry production teams took more than 50 focused meetings across the full spectrum of lender types to update criteria for all asset classes and loan structures.
Gantry producers from offices throughout the West including San Francisco, Los Angeles, Irvine, Seattle, Portland, Salt Lake City, Las Vegas and Phoenix attended.
Gantry’s exclusive network of insurance company correspondents and vetted agency, bank, credit union, CMBS, and debt fund lenders remain active and competitive.
Lender liquidity has never been higher with substantial allocations set for 2027. While many have hit their allocations for 2026, some are still actively seeking to deploy.
There is no shortage of money for commercial real estate deals underwritten to the current cost of capital. Upward pressure on rates may require additional equity.
Asset performance and local market fundamentals throughout the Western States have lenders confident in continued deployment of debt and equity capital.
In markets where performance is weaker, Gantry is still sourcing viable loan options from regional banks, credit unions, and debt funds active in a local trade area.
Ongoing pressures on rate setting benchmarks will require navigating a new playing field for maturing debt and pricing adjustments for new acquisitions.
Access to external equity will remain a challenge for many transactions seeking to right-size debt service to the cost of capital. JV and LP sources will remain selective, with preferred equity and mezzanine debt available from multiple sources, at a price.
Construction financing remains readily accessible for projects ready to break ground as rising costs including land, labor, materials, and insurance continue to slow starts.
New development will remain subdued as investors turn to viable existing property acquisitions below replacement cost. Land banking of entitled parcels is growing.
Office continues to work its way back into lender allocations, with both suburban and CBD assets seeing viable options, particularly in well leased multi-tenant formats.
Gantry continues to see competitive loan options from a wide field of lenders for every assignment and across all the major asset classes including multifamily, retail, industrial, office, mixed use and self storage. A full debt market survey is a must.
Loan resolution is becoming a primary focus for lenders as extension options max out and lenders begin to focus on clearing lagging maturities from balance sheets.
CMBS can be a compelling option for borrowers needing to maximize proceeds in a permanent, fixed rate, non-recourse format underwriting to interest only debt service.