What's Now in Real Estate Finance (February 2025)

Topics from our February agenda included:

MBA CREF25 Conference Recap
Randa Barton (Dallas) and Katie Schwarting (Charlotte)

The Seyfarth team attended the 2025 MBA Commercial/Multifamily Finance Convention in San Diego, along with over 2,100 other CRE professionals. The general sentiment regarding market conditions for 2025 and 2026 was cautious optimism, with most experts predicting solid growth in some areas (notably industrial) and the potential for a correction in other asset classes, like office. Insurance remains a very hot topic.

With deductibles on the rise, many servicers are requiring a deductible reserve be funded at closing to ensure that funds to pay the deductible are available in the event of a loss. Tax incentive financing, such as LIHTC loans and opportunity zone lending, seems poised to grow rapidly in the coming quarters. Attendees agreed that there is significant uncertainty in the regulatory area, and many feel as if things are in a holding pattern until the new administration’s reforms are better defined and more is known about the potential to remove Freddie and Fannie from government conservatorship. 

AI Solution for Real Estate Due Diligence
Chris Manzer (Atlanta)

Seyfarth’s Real Estate department is exploring a partnership with a startup that offers a tailored AI product for due diligence review in real estate transactions. This year, we are piloting this innovative solution with a select group of attorneys. We are collaborating with Seyfarth Labs to evaluate how this AI tool can best be integrated into our workflow and address any potential client concerns regarding security, confidentiality, and other key aspects.

Following a successful trial run at the end of 2024, we anticipate a collaborative relationship with the vendor, allowing us to adopt best practices and further customize the software to meet our firm’s specific needs. We are also exploring how the software can further enhance our existing abilities to efficiently manage large transactions. While we are optimistic about the potential benefits, we are taking a measured approach to implementation, with plans to begin in the next month and continue refining our application of this solution to ensure seamless integration into our real estate practice.