Owners of commercial real estate are experiencing a more difficult borrowing environment but this has not reflected significantly in the valuation of real estate...Stiffer underwriting criteria is still being applied by lenders but the reduction in real estate values will not be as onerous as first thought at the beginning of 2009.

From a financing perspective, up until mid 2008 commercial real estate was a preferred asset class to lend to and Alberta was the province to lend in. With the credit markets seizing up and the drop in gas prices, all of that changed...

In a constrained debt market, which we are in today, the creative rationalization of days past won't work. What seems to be working and present in every successful deal are transparent and sustainable relationships, deal structure and pricing reflective of risk.

We aked Bill Butler for his insights into a few questions about the current Canadian Commercial Lending landscape and trends for the future, and here's what he had to say.

The events of the last two years have resulted in radical change in the pricing and supply of commercial mortgage financing in Canada.

The past year has been a challenging one for those trying to arrange real estate financing. However, those organizations that have adopted a prudent and thoughtful strategy during the good times to manage their debt requirements -- one that kept sight of the downside risks -- are weathering the storm just fine.

The commercial lending market has changed dramatically in the past 12 months, especially with the US based meltdown of the financial markets.