Post by Merricks Capital

Effective CRE lending is about deploying capital into genuine supply–demand gaps and avoiding crowded themes or return assumptions reliant on capital appreciation. Today, we’re seeing capital pressure start to push weaker covenants and lower returns in areas such as AI-linked data infrastructure and some build-to-sell residential projects, where underwriting increasingly depends on favourable exit pricing. By contrast, the strongest opportunities for senior secured lenders remain in sectors where demand is sound but capital availability has tightened. Large format retail and CBD hotels are two clear examples, offering disciplined lending opportunities with strong structural protection and defined exit pathways. Click the link below to read this week's market review in full. https://lnkd.in/ghxabXmE