Ayush Kapahi, a partner at New York-based advisory HKS Capital Partners, is seeing a substantial amount of capital for senior and subordinate debt throughout the U.S. “There’s just a ton of capital on the side lines, the mezzanine market is just as rich as the equity market or even the debt market, the constraint on supply is just more on the deal flow and what people are willing to take risk on,” he said.

The liquidity is being seen throughout the country and is even spilling into secondary and tertiary markets. “The sole difference between a secondary or tertiary market compared to a primary market is simply valuation and sponsorship. It’s what happens if that tenant who occupies the 1,000-square-feet goes out?” Kapahi said.