Commercial real estate (CRE) owners hoping for relief from elevated borrowing costs may find themselves disappointed. Interest rates remain high, with little indication of a swift decline. Key Figures: The 10-year Treasury yield, a primary benchmark for CRE debt, has climbed by 100 basis points since the Federal Reserve began easing monetary policy in September 2024.…

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The commercial real estate (CRE) market witnessed a resurgence in liquidity throughout 2024 as lenders reopened funding channels. However, challenges tied to refinancing remain significant, according to Trepp’s year-end report. Key Insights: Private-label CMBS issuance surged by an impressive 165% in 2024, jumping from $39.3 billion in 2023 to $104.05 billion. This marks the largest…

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storage units

Across the country, self-storage rental rate declines are slowing, with national prices showing signs of stabilization as new development tapers off. Moderate Declines: National self-storage rental rates fell 1.2% year-over-year in January, an improvement from December’s 2.2% drop and November’s 2.4% decline, according to Yardi Matrix. On a month-over-month basis, rents inched up 0.3% to…

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Commercial real estate prices in the U.S. are beginning to steady, driven by activity in smaller markets and falling interest rates as 2025 approaches, according to CoStar. Recent Trends: CoStar’s value-weighted composite index rose by 1.3% in November, marking its fourth consecutive monthly increase—the longest streak of growth since mid-2022. Although prices remain 2.5% lower…

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Background Statement  The fossil fuels that cool, heat, and power our buildings are responsible for around 70% of NYC’s carbon emissions. The City plans to address these emissions and make New York carbon neutral by 2050. To achieve this goal, NYC introduced Local Law 97 (LL97) The smartest way to finance building upgrades to help…

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Condo building construction

Rising loan modifications signal mounting challenges for commercial real estate (CRE) lenders, as the traditional “extend-and-pretend” approach faces increasing limits. Modification Trends: Banks have significantly increased modifications on non-owner-occupied (NOO) CRE loans, with a 65-basis-point rise in the first nine months of 2024—a 35% jump since mid-year, according to Moody’s. Smaller banks led the charge…

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The commercial real estate market appears poised for a resurgence as financing activity gains momentum ahead of 2025, signaling what some experts believe could be the most attractive investment environment in nearly two decades. Financing Makes a Comeback Following a pandemic-driven slowdown, the $22.5 trillion commercial real estate sector experienced a notable recovery in 2024,…

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As the lending landscape evolves, commercial real estate professionals in the Hudson Valley are encountering increased scrutiny and regulatory complexities. This was a key takeaway from a recent panel hosted by the Hudson Gateway Association of Realtors’ (HGAR) Commercial & Investment Division in White Plains, where prominent industry leaders shared insights into the current lending…

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Here’s our team’s predictions for 2025! 1. Multifamily Rent Growth Rebounds: After a challenging market period, multifamily rents are expected to see positive year-over-year growth. 2. Stable Interest Rates: Interest rates are projected to stabilize within the 3.75% to 4.75% range, offering a more predictable financing environment. 3. Rising Loan Losses: Real estate loan defaults…

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As office vacancies hit historic highs and property values continue to decline, developers are increasingly transforming underutilized office buildings into much-needed residential spaces. The big picture This trend addresses two pressing issues simultaneously: the record-high national office vacancy rate, which reached 19.2% in Q3 2024, and the housing shortage, which demands an additional 3.8 million…

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