In a recent article with GlobeSt titled “Borrower Demand Returns as CRE Investment Activity Picks Up,” Matthews™ First Vice President & Director Clark Finney, discusses the return of borrower demand in the second half of 2025, and how it will aid a capital markets pipeline recovery.

 

After several years of muted activity driven by rising interest rates and economic volatility, Clark highlights a clear shift in market sentiment. Investment activity has begun to rebound, and with it, lending velocity. As he explains, investors are finally moving out of a prolonged period of uncertainty. “No one wants to place capital in a period of chaos,” Clark says. “Today, we finally have a clearer sense of direction—especially compared to the fog surrounding 2025 at this time last year.”

 

Clark notes that stabilizing interest rates and improving economic indicators are giving investors confidence to reenter the market. While he does not anticipate a return to the ultra-low rates of the pandemic era, he emphasizes that such conditions aren’t necessary for meaningful activity. If the 10-year Treasury settles near 4%, he says, “it will put a lot of gas on the market.”

 

This renewed borrower demand is already expanding opportunities for investors. “As lenders get comfortable operating in a more stable environment, investors are going to have more debt options and see more aggressive terms,” Clark explains.

 

When discussing which asset classes are best positioned, Clark points to the continued strength of multifamily. “An economically stabilized, 2000-plus vintage multifamily asset in a major market is going to be the easier deal to finance for the foreseeable future,” he says, noting strong lender appetite for diversified cash-flow assets such as multi-tenant industrial and self-storage.

 

Looking ahead, Clark remains optimistic. He expects steady improvement over the next 18 months as the market continues to reset. “We’re going to continue moving into a better position than we are today,” he says. “Eventually, we’ll reach an environment that truly resembles the recovery this industry has been waiting for.”

 

His advice to investors: “Sometimes you don’t need to overcomplicate it. I’ve had the opportunity to work with incredibly successful, seasoned operators who don’t fixate on every basis point. They focus on strategically placing and removing pieces on the board as they navigate evolving market cycles.”

 

Read the full GlobeSt article here.