PERE Credit: Mid-Year Data Shows Subdued Construction Lending Persists – Insights from Paul Rahimian, Parkview Financial

By Samantha Rowan | PERE Credit | July 31, 2025

Construction lending remains muted in 2025, representing roughly 15% of all new commercial real estate loans, according to a mid-year survey of alternative lenders by PERE Credit. Elevated financing and construction costs, combined with limited institutional equity, are slowing development activity despite overall growth in CRE lending.

Paul Rahimian, CEO of Parkview Financial, noted that these conditions make it challenging for developers to assemble viable capital stacks. “Construction costs are still elevated, and financing costs are obviously elevated from the last cycle,” he said. “These factors make it more difficult for a project to work out and raises the question of what the eventual takeout is. That, in turn, ends up limiting construction loan proceeds, which makes it difficult for developers to put together their capital stacks.”

Parkview sees a niche in “last-mile” construction lending, helping borrowers stabilize completed projects and recapitalize through short-term bridge financing until longer-term solutions, like agency debt, can be secured.

The full article, originally published by PERE Credit, is available to subscribers here