Middle Market Commercial Financing Trends to Watch in 2014
Growth Seen in Restaurant, Commercial Real Estate and Healthcare Financing
- Restaurant Sales Set to Increase in 2014; Fast Casual Leads Growth
- Commercial Real Estate Is a Sector of Choice for Investors; Low Interest Rates Drive High Prices
- Healthcare M&A Seen as Improving as Consolidation Increases
NEW YORK--(BUSINESS WIRE)--Critical sectors of the U.S. economy should see continued or renewed strength in 2014, according to business leaders at CIT Group Inc., (NYSE: CIT) cit.com, a leading provider of financing to small businesses and middle market companies. Bob Bielinski, Managing Director, CIT Corporate Finance, Retail and Restaurants; Matthew Galligan, President, CIT Real Estate Finance; and Steve Warden, President, CIT Corporate Finance, Healthcare, share their 2014 outlooks for their respective industries in “Thoughts On: 2014 Commercial Financing Trends,” (cit.com/2014trends) the latest piece of market intelligence to be featured in CIT’s Executive Insights series (cit.com/executiveinsights).
The executives each offer key insights into the top trends they see ahead in their industry:
Bob Bielinski — Restaurants
- Improved economic data, including resilient consumer spending, rising home prices and continued job creation, suggest sales should increase in 2014. The most notable growth will continue to come from fast casual brands, which are taking market share.
- The current favorable lending environment will continue into 2014. Large and middle market restaurant companies, as well as franchisees of top-tier brands, will have ready access to capital for acquisitions, remodels and/or new builds.
Matthew Galligan — Commercial Real Estate
- As investors search for returns in a low-interest-rate environment, where bonds are out of favor, and bargains are getting harder to find in the stock market, real estate is back in vogue. The flow of abundant investment dollars into the sector from banks, insurance companies, commercial mortgage backed securities (CMBS) and foreign investors have fueled the sale and refinancing of properties during a recent wave of maturities in the CMBS market.
Steve Warden — Healthcare
- M&A in middle market healthcare is likely to pick up in 2014, after two consecutive years of decline — the drivers will be consolidation pressure and continuing Affordable Care Act implementation giving better visibility into the future.
- Healthcare companies that are focused on growth and margin expansion are going to see increasing pressure to evolve from “fee for service” models to “fee for value” models with an emphasis on quality, low-cost outcomes.
View CIT’s corporate overview video (cit.com/corporatevideo) that showcases our support of the small business, middle market and transportation sectors. Follow us on Twitter, LinkedIn, YouTube and Facebook. Individuals interested in receiving corporate news releases can register at cit.com/newsalerts or subscribe to the RSS feed at cit.com/rss.
About CIT Corporate Finance
CIT Corporate Finance provides lending, leasing and other financial and advisory services to the middle market with a focus on specific industries, including: Aerospace & Defense, Business Services, Commercial Real Estate, Communications, Energy, Entertainment, Gaming, Healthcare, Industrials, Information Services & Technology, Restaurants, Retail and Sports & Media. cit.com/corporatefinance
Founded in 1908, CIT (NYSE: CIT) is a financial holding company with more than $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle market lending, factoring, retail and equipment finance, as well as aerospace, equipment and rail leasing. CIT operates CIT Bank (Member FDIC), its primary bank subsidiary, which, through its Internet bank BankOnCIT.com, offers a suite of savings options designed to help customers achieve a range of financial goals. cit.com