My firm, Partner Engineering and Science, provides due diligence for commercial real estate lending and I believe that our firm works on approximately 4% to 5% of commercial real estate transactions in the country.* The result is that we have a pretty unique window into who is lending on commercial real estate. I track our firm's data rather carefully and combine our data with transaction data provided by our largest vender EDRᵻ to provide the market a somewhat quantitative analysis of activity.
The overall volume of Phase 1 Environmental Site Assessments--and by extension commercial real estate transactions--has been steadily increasing month after month since its low point in October of 2009. Our firm's Phase 1 ESA volume in the 3rd Quarter of 2011 has increased 28% over the 3rd quarter of 2010 and volume has increased industry wide by 7% quarter over quarter. The connection between Phase 1 ESAs and CRE transactions is not absolute as much of the volume of Phase 1 ESAs has come from pre-foreclosure work. Nevertheless, lenders spending money to work out their non-performing loans is still a good barometer of positive activity for commercial real estate.
Read more...GlobeSt.com - View from the Field - Who Was Lending in 2011? - The Science of Real Estate Article