Ed Boxer of Essex Financial Group says virtually all commercial real estate lending came to a halt in 2009 and began to recover in 2010. Lending on retail centers has taken the longest to regain its footing and lenders remain cautious when it comes to lending on retail properties but it has recovered and stabilized centers in good locations with strong sponsors can obtain nonrecourse permanent financing at historically low interest rates. The most desirable retail centers continue to be properties that feature “necessity stores.” Necessity retailers are grocery and drug stores. Lenders prefer that the grocer or drug store is a tenant and therefore part of the collateral for the loan. Lenders continue to ask for sales figures from tenants to gauge the desirability of the center by the consumer. These figures often are difficult to obtain if the tenant is not required to provide sales to the landlord. But it is much easier for a lender to make a lending decision on retail with sales. Many lenders will not finance retail if they cannot obtain sales from the major tenants. See more in the July 18 issue.