An increasing number of lenders to the commercial real estate sector predict loan production will increase this year, GlobeSt.com reported.

Of the 60 nationwide lenders surveyed by Jones Lang LaSalle (JLL) during the recent Mortgage Bankers Association’s Commercial Real Estate Finance/Multifamily Housing Convention and Expo in Las Vegas, 43 percent of participants said that they expect their loan production to range from $2 billion to $4 billion in 2010, compared to 21 percent who expected to lend $2 billion to $4 billion last year.

In addition to restructuring existing loans to give “borrowers 24-plus-month extensions in order to avoid foreclosure on high-quality, well-located assets,” said Bart Steinfeld, managing director of JLL’s real estate investment banking practice, many financial institutions are coming to terms with the fact that they can no longer “extend and pretend” and are realizing a need to divest properties.

“They’re now realizing it makes good sense to move these assets off their balance sheets to create greater ability to originate loans this year,” Steinfeld said.

More lenders this year also expressed willingness to lend more on single-asset acquisitions. According to the survey, some 56 percent are willing to lend $50 million or more for such transactions in 2010, compared to 2009, when the majority of lenders would only loan $10 million to $25 million on a single asset.

“A few life companies and investment banks we spoke with indicated that they’re willing to lend $150 million to $500 million on large, single-asset acquisitions in 2010,” said David Hendrickson, managing director of JLL’s real estate investment banking practice.

Though liquidity within the capital markets “is expected to turn from a trickle to a slow-but-steady flow in 2010,” the survey said, tight underwriting standards will remain and loan-to-value ratios will fall primarily between 50 percent and 70 percent.

“A number of lenders have indicated an interest in bridge loans for speculative development projects while yields are still high and spreads are compressing on the best projects,” JLL said, but many lenders have no plans to fund speculative projects.

“One life company and one commercial bank respondent noted that each would never lend on speculative developments again,” JLL said.

Nearly 70 percent of the lenders surveyed said their loan production will increase to $2 billion to $4 billion in 2011.