N
ewmark Group's capital markets team in Texas is gearing up for a busy year ahead, driven by gaps left by regional banks and a surge in data-center investment. The firm has recently appointed Clint Frease as vice chair, who will oversee debt capital business in Texas and the central region, as well as provide national debt advisory services to its data center capital markets team. Frease joins from Eastdil Secured, where he was a managing director.

    Newmark's expansion into debt capital is a response to increased institutional investment in Texas multifamily properties, driven by population and job growth. Debt funds and mortgage finance companies are under pressure to deploy capital raised in recent years, prompting lenders to expand more aggressively. Data centers are also experiencing significant demand, with billions of dollars worth of construction loans needing funding.

    The market for data centers is expected to grow, with the average capacity of hyperscale facilities set to nearly triple over the next four years. This boom has made Dallas a major player in the industry, with companies like DataBank and Compass Datacenters investing heavily in new projects.

    Regional banks are leaving gaps in the finance market as they handle over-leveraged loans, creating opportunities for CMBS lenders, debt funds, and life insurance companies to fill the void. These players are raising the competitive stakes, with private equity firms backing companies that take on riskier loans.

    The environment is unique, with life insurance capital being invested in assets typically associated with private equity managers. This shift has led to a greater willingness among lenders to move up the leverage stack and take on floating-rate loans. The impact of the White House on real estate debt markets remains uncertain, but Trump's focus on deregulation could boost market activity.