By Kristena Hansen | Contributing writer |Phoenix Business Journal
Just like residential mortgages, commercial loans from traditional banks have been difficult to obtain since the recession — especially for speculative office projects.
Lending restrictions are unlikely to loosen in the foreseeable future, making it harder for spec projects to get off the ground and keeping any risk of overbuilding at bay.
“There’s certainly a lot more restraint by the lending industry … to go build spec,” said Mike Beall, a broker with Cassidy Turley in Phoenix. “It’ll be a function of capital, which I think is going to be far more prudent.”
