Lending momentum accelerated sharply in Q3, climbing to its strongest level since 2018, according to CBRE’s latest Lending Momentum Index. The index jumped 112% year-over-year to 1.04, driven by a 36% increase in permanent financing volume and robust September activity—clear signs that the debt markets are gaining traction again. Improved loan terms, narrower bid-ask spreads,…

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With the Federal Reserve remaining noncommittal on when — or even if — it will adjust interest rates for the remainder of 2025, the commercial real estate (CRE) market continues to operate in a holding pattern. Transaction volumes remain well below historical norms, cap rates have stayed elevated, and both buyers and sellers are largely…

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After a period of declining valuations, the small multifamily sector rebounded in late 2024, with increasing loan originations and strong occupancy rates suggesting market stabilization. Valuations Stabilizing Small multifamily property values saw an upward trend in the second half of 2024, despite a 2.1% year-over-year drop in Q4. However, the pace of decline has slowed,…

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Commercial real estate financing showed meaningful signs of recovery in the first quarter of 2025, with both lending activity and property sales registering notable year-over-year gains. Debt Origination Rebounds: According to Newmark’s latest Capital Markets report, CRE debt originations surged 42% compared to the same period last year. While volumes remain below pre-pandemic benchmarks, the…

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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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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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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,…

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Skyscraper

Here is a snapshot highlighting several key trends for commercial real estate (CRE) for the balance of this year. 1. Office Visits and Return-to-Office (RTO)– Office visits are being driven largely by employees living within three miles of their workplace.– Cities on the East Coast are leading the recovery in office building visits, suggesting a…

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Enhanced Requirements Under the new guidelines, lenders will be required to independently verify borrowers’ financial information and funding sources for multifamily properties. This includes rigorous due diligence on property valuations and financial performance, addressing the current reliance on unverified borrower-provided data. Current Climate The rise in interest rates has caused a decline in property values,…

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Recent insights on Commercial Real Estate Loan Maturities from Newmark shed light on the looming challenges facing banks across the United States as trillions of dollars in property debt approach maturity in the coming years. According to their latest report, a staggering $2 trillion maturity wall of commercial real estate (CRE) loans looms over the…

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