Updates in the world of Commercial Real Estate
By Peter Grant Prologis has agreed to pay Blackstone $3.1 billion for a portfolio of U.S. warehouses and distribution properties in a sign that industrial space remains one of the strongest property types in the shaky commercial property sector. The portfolio includes nearly 14 million square feet in about 70 properties in major markets including Atlanta, California, Dallas, south […]
by : Austen Hufford A crash in office values could start a doom loop with banks, with falling prices leading to less finance and thus lower prices. Gloomsters think that could spread across the multitrillion-dollar commercial real-estate sector, sucking money out of the economy as banks and institutional investors turn more cautious, James Mackintosh reports. Mori Trust […]
By Ramsey Al-Rikabi Federal Reserve Governor Michelle Bowman said US banks need better supervision rather than higher capital requirements because they could stunt lending and competition, and she repeated her calls for an independent review of recent bank failures. “We need to consider whether examiners have the appropriate tools and support to identify important issues […]
By Erik Sherman Along with bank liquidity issues, CMBS delinquencies are an important sign of CRE health. Possibly more so because they show not just trouble on the horizon but already in the rear-view mirror. A new Trepp analysis suggests that sometime in May, the red flags were starting to unfurl. The CMBS delinquency rate jumped […]
By Richard Berger The lack of affordable insurance options for property owners of all types increasingly puts needed insurance coverage out of reach and limits the ability of property owners to make needed investments in their properties. As a result, this stressed insurance market, stubborn inflationary pressures, and rising interest rates have disrupted transactions and […]
By Carol Ryan Banks are getting stingy with commercial property mortgages. Ideally, alternative lenders could step in and help landlords to refinance their debts, but this part of the lending market isn’t in great shape either. Loans for the property industry are drying up fast. The CBRE Lending Momentum Index, a proxy for U.S. commercial real estate lending, fell 54% […]
By Andy Medici – Senior Reporter, The Playbook, The Business Journals Small-business loans are becoming both harder to get and more expensive — and that combination is expected to get worse. While we previously have written about the tightening credit market — driven in part by the Federal Reserve’s sustained interest rate increases over the last year — […]
The delinquency rate on office building-related mortgage bonds spiked in May, per a report from Trepp, Emily writes. The big picture: Investors have been watching for this to happen since last summer — and May’s move may represent a “tipping point,” the data provider said in a note. State of play: The office space market is in a tough spot […]
Josh Schafer – Reporter Wed, May 24, 2023 Wall Street has been waiting for a recession that hasn’t materialized roughly five months into the year. Executives at S&P 500 companies are talking about recessions less on earnings calls for the third straight quarter, per FactSet. S&P Global’s flash US composite PMI showed US economic output reached a 13-month high […]
By Kate King A growing number of retailers in city office districts are relocating their businesses to the suburbs, where visits to shopping centers are on the rise as fewer people commute to downtown workplaces. With average office usage rates still only around half of where they stood before the pandemic in many major cities, many bars, restaurants and other […]
