Charting a Course Amid Uncertainty: The New Reality for CRE Investors
September 9, 2024 — As we approach the final quarter of 2023, the commercial real estate (CRE) market continues to face significant challenges. For two decades, historically low interest rates have made property investments more accessible, leading to a period of robust property valuations. However, it is becoming increasingly evident that this era is ending. Here are five factors to consider as we navigate the current market.
Ten Lessons from 15 Years Running Summer Street Advisors
September 9, 2024 — It has been a wild ride. In 2009, during the height of the Great Financial Crisis, Summer Street Advisors was founded. Fifteen years later and we would not be where we are today without our clients, partners, and team members. We are proud to have worked with over one hundred clients and underwritten over fifty billion in transactions.
An Economy and Property Markets in Flux Calls for an Important Shift in Priorities
October 10, 2023 — After the Federal Reserve’s latest 75-basis point increase in September, the federal funds rate rose to 3.25 percent and the 10-Year Treasury yield rose to 4.22 percent, the highest level since July 2007. With these rate increases to calm inflation, the Federal Reserve risks damaging the commercial real estate market and credit markets.
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.