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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.…

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…

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,…

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…

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,…

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…

My 90-day Payment Deferment is Up, Now What? 06/10/2020 Robert Withers Each commercial real estate asset class has been impacted by the COVID-19 pandemic in one way or another. Many commercial lenders extended 90-day payment deferments to their borrowers as a way to help relieve immediate financial hardship in case the tenants (sometimes the borrowers themselves)…

Buy, Sell or Hold? CREF Expert Robert Withers Offers Timely Advice April 15, 2020 During these turbulent times, many lenders are suspending activity or taking very conservative views on ongoing business. Investors are in a panic, not knowing what their best path forward is. Robert Withers, President and CEO of M1 Capital Corp., has…