Time for Banks to Face CRE Loan Realities
August 30, 2023 — Coming into 2023, banks and other CRE lenders believed interest rates would plateau in the summer and decline in the fall. In turn, values would stabilize, marking the beginning of the CRE reset. The Federal Reserve’s rate-hike pause in June buoyed those expectations.
Banking Crisis Puts Spotlight on Bank CRE Debt Holdings
July 11, 2023 — The recent Silicon Valley Bank (SVB) and Signature Bank collapses – and the cracks at First Republic Bank – have managed to re-focus depositors and regulators alike on bank risk. Inflation may erode the value of money, but if one’s life savings evaporate – that is catastrophic.
If Remote Working is Here to Stay, What Happens to Office?
March 1, 2023 — Few people could have predicted how the pandemic-induced shut down of the economy three years ago would have such a lasting impact on work patterns and office space utilization. While the immediate collapse of demand in the lodging was expected, as was the reduced foot traffic within the retail centers, these asset classes have largely rebounded. Offices demand remains depressed and directionally uncertain.
Risk-Off: Caution Reins as the Cost of Capital Rises
July 11, 2022 — The era of plentiful and attractively priced debt and equity capital that drove the commercial real estate market over the last several years has come to an end. And with it, the certainty of property values.
How To Maximize Returns as The Fed Responds to Economic Uncertainty
June 28, 2022 — After raising the benchmark federal funds rate seventy-five basis points this month and promising more hikes, the Federal Reserve is continuing to shrink its balance sheet by $47.5 billion a month through August and then by double that amount beginning in September.