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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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…

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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…

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Exterior of large building with 2 story condos

While many commercial real estate sectors face challenges, multifamily properties are experiencing renewed investor interest, driven by high mortgage rates and increasing single-family home prices. A Comeback Investor confidence in office, retail, and industrial real estate has waned, but multifamily is gaining momentum. According to Altus Group’s Q3 2024 U.S. CRE Survey, 69% of investors…

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When the Federal Reserve lowers interest rates, it can have a noticeable effect on real estate cap rates, as long-term yields are a key factor in real estate investment decisions. Sensitivity of Cap Rates to Interest Rates Research from CBRE Econometric Advisors (CBRE EA) indicates that real estate cap rates respond differently to changes in…

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Exterior of large building with 2 story condos

The U.S. multifamily market saw significant growth in demand during the third quarter of 2024, with a total of 176,000 units absorbed—the highest absorption rate since Q3 2021. This surge in demand came close to matching the 178,000 newly delivered units during the same period, narrowing the supply-demand gap to its smallest margin in three…

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The U.S. multifamily and industrial real estate sectors are facing tightened insurance terms following unprecedented losses in 2023. Rising Costs U.S. housing construction reached its highest level in 36 years in 2023, with 440,000 new apartment units completed. Of these, 81% (356,400 units) were built using wood framing, which insurers have long viewed as a…

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The multifamily sector in the CMBS market has experienced a sharp increase in distress, with delinquencies nearly tripling in just six months. Surge in Delinquencies CRED iQ’s latest report reveals that multifamily CMBS loans marked as delinquent or in special servicing jumped by 185% from January to late June. This significant rise marks the most…

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