The year 2016 was only considered sweet by some of the powerhouses in commercial real estate. Unfortunately, most of the banks’ lending activity decreased in 2016 as did a lot of the private funds of the bigger institutions. There is absolutely no doubt the alternative lenders had a successful year since they were able to fill the transitional and construction voids quite well. They even managed to significantly up their originations along the way. The life companies were fortunate as they did not fall behind in 2016 and in numerous instances outperformed their figures from 2015.
This being said there is a list of the fifty most important players in the field of commercial real estate. The 49th spot was held by Mack Credit Real Estate Strategies and Mesa West Capital came in at number 40. One of the United Kingdom’s largest hedge funds is ACORE Capital. They were founded in May of 2016 and placed at number ten on the list. The previous year they ranked at number 39 and the upward motion was due to their enormous growth in the bridge lending space.
Another addition that was noticed was the Bank of the Ozarks. They placed in the 31st spot due to their exceptional activity on the lending front for construction projects. This Little Rock Bank fared incredibly well in 2016. The 20th spot was taken by Janet Yellen in last year’s list when the interest rates were so uncertain. These rates still have a lot of power over the financial markets. Despite this most of the lenders are expecting at least a couple more quarter-point rate hikes. These expected changes have already been baked into their underwriting. The experts within the industry expect to see interest rates increase and believe this is attributed to the growth of the economy. Although for some this is just another way to increase pricing.
Rounding out this year’s list include noted names in real estate like David Lehman, Andrew Farkas (http://andrewfarkas.net/) and Jeff Fastov. The question now is what will happen under the Trump administration. There are a lot of new faces around and one in particular produced several Hollywood films. These new players have an excellent opportunity to dictate where the future of the financial markets are heading.