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…

Read More

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…

Read More
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…

Read More

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,…

Read More

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…

Read More

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…

Read More

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…

Read More

Billions Raised, but Unspent Real estate funds that amassed significant capital post-pandemic in anticipation of distressed opportunities are finding fewer deals than expected. According to MSCI, the total value of distressed properties nationwide reached only $102.6 billion in Q3, falling short of the anticipated wave of distressed sales. Instead of foreclosures or asset sales, banks…

Read More
Skyscrapers

U.S. banks are facing growing exposure to risk due to a surge in “double defaults” on commercial real estate (CRE) loans, according to the Financial Times. This trend has raised questions about whether banks’ use of “extend and pretend” strategies may be masking deeper issues within the sector. Under Scrutiny: Banks have been using “extend…

Read More

The New York Fed has raised concerns about the “extend-and-pretend” approach in regional banks’ commercial real estate (CRE) portfolios, warning that it may heighten financial instability. According to Bisnow, regional banks have been extending loan maturities rather than marking loans as distressed, contributing to a $400 billion surge in upcoming CRE loan maturities. This practice,…

Read More