Florida Market Update: March 4, 2025
Written by Ryan Maddaluna, Originator
As Q1 reaches its midpoint, investors in the Florida lending market are gaining confidence. The new political climate has settled, and the Federal Reserve’s stance on interest rates is clear. This clarity, along with the 10-year treasury falling by over 30 basis points, has sparked an increase in lending requests. Lenders in Florida are responding to this surge in demand, offering more favorable terms.
Increased Lending Activity in the Florida Market
In recent weeks, Florida lenders have seen a rise in financing requests. This surge is driven by the Fed’s policy and the favorable treasury rate movement. With the market conditions now clearer, more investors are turning to Florida lenders for financing. As a result, lending activity is growing across several sectors, particularly in real estate.
Florida Lenders Offer Competitive Financing Terms
At the MBA Conference in San Diego, Largo Capital met with over 50 lenders. The conference emphasized that Florida lenders have raised their funding allocations for 2025. This increase is due to the large volume of loans maturing throughout the year. To replace these assets, Florida lenders are offering more competitive pricing. As a result, spreads have tightened significantly.
Life Insurance Lenders Drive Florida Market Activity
Florida’s life insurance lenders are particularly active in the market. They are offering some of the most attractive terms available. Some have introduced 3-year debt options, which help borrowers navigate current rate volatility. Largo Capital, through correspondent relationships with 27 life insurance companies, has access to debt programs unavailable to the public. This allows us to secure favorable terms for Florida’s retail, multifamily, and industrial properties.
Now Is the Time to Secure Financing in Florida
As Florida lenders deploy their 2025 allocations, competition will increase. If you have maturing debt in the next six months, now is the perfect time to lock in favorable terms. By acting now, you can avoid the pressure of future market shifts.
