Commercial Real Estate Lending Activity Back to Pre-COVID Levels, Banker Says

Noel Purcell, managing director and head of real estate at Mizuho Americas, participated in a video interview in conjunction with Nareit’s REITweek: 2021 Investor Conference.

Purcell discussed the changes in lending activity across commercial real estate in recent months, and where those trends are heading.

“At this stage of the game we think liquidity is back to where it was pre-COVID, and most of the underwriting criteria is back to where it was on a pre-COVID level…overall you’re going to see a consistency of pricing, a consistency of structure,” Purcell said.

Purcell also said he does not expect to see any significant tightening of underwriting standards, with the exception of “tightening around the edges” that you would normally see in a recovery market.

Turning to M&A activity in the REIT sector, Purcell said he does expect the active pace seen so far in 2021 to continue, with consolidation looking likely within the health care sector.