The commercial real estate financing market has been plagued by uncertainty over the past several years due to post-pandemic volatility. But the tide is shifting, and the market is entering a period of stabilization. 

The Mortgage Bankers Association projects that total commercial mortgage originations are expected to hit $805B this year, marking a nearly 88% surge from the market’s cyclical low of $429B in 2023. 

While capital flows are recovering, New York-based real estate accounting and advisory firm Citrin Cooperman knows that this progress remains dependent on the sponsor quality and asset class.

“The CRE financing market has become increasingly active over the past year, but capital is being deployed far more selectively, and underwriting has become increasingly asset-class specific,” said Kevin Burns, who's been a partner at Citrin Cooperman for 15 years. “Capital continues to flow to high-quality multifamily, industrial and other sectors with strong fundamentals.”

Burns will moderate a panel titled Development Financing: Ground-Up Construction, Building Upgrades and Conversions at Bisnow’s National CRE Finance Event in New York City on Sept. 30.

Click here to register and purchase tickets.

Bisnow spoke to Burns about the state of CRE financing, how Citrin is helping its clients adapt to the market transition, and what he hopes attendees will take away from the upcoming event.

Bisnow: How would you describe the state of CRE financing?

Burns: I think the quality of the asset, the stability of the cash flows, and the strength and track record of the sponsors are often the key factors that determine real access to capital. Lenders remain more cautious toward sectors that continue to face challenges in today’s environment, such as certain office assets.

We're also seeing a more diverse lending landscape. Traditional banks have returned to the market and remain an important source of financing, but their underwriting standards are still pretty disciplined, and the most attractive terms are generally reserved for high-quality assets and experienced sponsors that have a proven track record.

At the same time, debt funds have become an increasingly important part of the market across our real estate client base. We continue to see debt funds play a significant role in acquisition financing, refinancing, bridge loans and construction-related financing opportunities. While debt fund capital often comes at a higher cost than traditional bank financing, lenders can provide greater flexibility and move quickly to structure solutions for transactions that might not fit well within a traditional bank's lending parameters.


Bisnow: How is Citrin helping its clients adapt to this market transition? 

Burns: We provide a wide range of audit, accounting, tax and advisory services to real estate owners, operators, fund managers and developers. 

One of the biggest areas of growth we're seeing right now is in the outsourced accounting space across the industry. Many organizations are dealing with accounting and finance staff turnover or struggling to build teams that can keep pace with increasingly complex reporting requirements from investors, lenders and other stakeholders. 

We're helping clients either augment their internal teams or fully manage the accounting and finance function. We’re also leveraging artificial intelligence and automation tools to streamline these routine processes, improve efficiencies, enhance data accuracy and deliver more timely financial reporting. By combining our experienced professionals with technology-enabled solutions, we can help our clients scale their finance operations more effectively while still maintaining strong financial controls. 

Reliable, timely financial reporting is critical in today's environment — not only from an operational standpoint but also when communicating with investors, securing financing and supporting future growth. As capital providers become increasingly selective, having strong financial infrastructure, supported by the right people, processes and technology, can be a meaningful competitive advantage.


Bisnow: Construction lending is a massive part of CRE financing. How is Citrin helping its clients mitigate risks?

Burns: We work closely with developers, owners, fund managers and financing sources throughout the development life cycle, which gives us a unique perspective on what drives successful construction financing transactions.

Lenders and investors increasingly expect strong financial reporting, disciplined project controls and timely visibility into project costs, budgets and overall performance. As underwriting standards have become more rigorous, transparency and accurate reporting have become even more important.

Our role is to help clients strengthen their financial infrastructure through audit, advisory and outsourced accounting services. By providing reliable reporting, improving cost tracking and helping identify potential issues early, we enable our clients to better manage risk, maintain lender and investor confidence, and execute projects successfully.


Bisnow: What do you think will be the hottest topics of conversation at the event?

Burns: I expect adaptive reuse and building conversions to be major topics, particularly as New York continues exploring ways to repurpose underutilized assets and address the evolving market demands. I also think there'll be significant interest in how NYC Mayor Zohran Mamdani’s policies could influence development activity, housing production and capital investment decisions.

Another topic that continues to gain momentum is AI and its impact on real estate, from data center development and power infrastructure needs to how owners, operators and lenders use data to make investment decisions. AI is creating both opportunities and new considerations across the industry. 

Alongside discussions around debt funds and construction financing, I think attendees will be focused on identifying where the next wave of real estate opportunities will emerge and how those opportunities can be financed in this increasingly competitive market. 


Bisnow: What is the main takeaway you hope attendees will have from this event?

Burns: I hope attendees leave with insights on how to navigate today's financing environment and a better understanding of what lenders and investors are looking for in the current market. Projects with solid fundamentals and experienced sponsors continue to attract capital, and understanding that dynamic is critical to getting deals done today.

This article was produced in collaboration between Citrin Cooperman and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.