According to the latest analysis from MSCI, the commercial real estate (CRE) market in 2025 remains under pressure as underwater loans and distressed assets present significant challenges. Loans at Risk Among the $500 billion in CRE loans set to mature this year, 14% are classified as underwater, where the outstanding loan balance exceeds the asset’s…

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“In 2024, SBA 504 approvals topped $6 billion — the highest in history.” With interest rates rising and commercial loan options tightening, smart business owners aren’t sitting on the sidelines. They’re locking in long-term, fixed-rate financing while they still can — and the SBA 504 loan is leading the charge. At our commercial real estate…

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Here are eight key areas where policy shifts might be felt: 1. Opportunity Zones Revival The Opportunity Zone (OZ) program, which has driven over $75 billion in investments since its inception in 2017, could see renewed attention. Trump has proposed extending the program beyond its 2026 expiration and potentially expanding its scope. Investors are already…

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Commercial real estate lending gained strong momentum in the final quarter of 2024, fueled by solid market fundamentals, a surge in maturing debt, and ample capital availability. Lending Activity Surges The CBRE Lending Momentum Index climbed 21% from Q3 and 37% year-over-year, closing the quarter at 259, well above the pre-pandemic five-year average of 229.…

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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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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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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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