How the Debt Landscape Presents Opportunities for Investors
Debt Liquidity Solid Across Most CRE Sectors And Markets
- Fixed CRE mortgage rates facing downward pressure due to lower treasury yields and tighter lender spreads
- Loan-to-value and debt service coverage ratios remain stable
Lenders Are Engaging In CRE Transactions
- Banks and credit unions increasing lending volumes
- CMBS bond investors showing healthy appetite for lending, especially for hospitality transactions
- Life companies actively focused on low-leverage deals with strong sponsors
Conditions Are Ripe For Investors To Act
- Election may stall Fed’s decision to cut rates in late 2024
- Interest rates have come down and cap rates are still elevated
- Investors likely working with a relatively narrow window where cap rates and interest rates align to clear the market
*Through September 11
Sources: Marcus & Millichap Research Services, Federal Reserve
Watch Video Below: