Rising delinquencies and regulatory scrutiny In 2023, the six largest U.S. banks saw a significant increase in delinquencies on commercial real estate loans, nearly tripling to $9.3 billion. This increase was driven by high vacancy rates and rising borrowing costs, creating challenges for the commercial real estate sector. As companies faced difficulties maintaining occupancy rates and managing rising expenses, their ability to meet loan obligations decreased and delinquencies increased. The impact of these challenges has been widespread, prompting banks to reassess their risk exposures and develop strategies to mitigate potential losses. The sector is under increased scrutiny from regulators due…
Author: Private Lending Agent
From Golden Gate Sotheby's Bay Area Market Report… Signs of progress The San Francisco Bay Area housing market continues to gain momentum despite modest headwinds. Mortgage rates remain high through early 2024, slowing the pace of economic expansion in the San Francisco Bay Area. Technology employment has slowed slightly, but not in AI-related occupations. The San Francisco Bay Area has added 18,000 jobs so far this year, but at a slower pace than last year. Hiring has been strong in the South Bay and East Bay suburbs, but there has been a slight decline in San Francisco. Nevertheless, the local…
Jack Kessler and Massie Weathers 2 months ago AMARILLO, Texas (KAMR/KCIT) — The City of Amarillo announced that commercial property owners and business owners in Amarillo's Barrio, East Ridge, North Heights and San Jacinto neighborhoods will now be able to take advantage of the Business Improvement Grant Program to improve the appearance of their properties. The BIG program offers grants worth up to 50 percent of the total cost of exterior renovation projects, with up to $20,000 for projects over $40,000, according to city of Amarillo staff. Staff noted that projects must involve the exterior of a commercial property or…
Terry Carroll and Kathryn Smith, partners in Seyfarth's real estate practice, will present a Strafford webinar on May 21, “Bridge Loans in Commercial Real Estate: Financing and Flexibility in an Uncertain Market.” explanation When used optimally, bridge loans provide a financing alternative for transitional properties that need to be renovated, repaired, or leased before a borrower can qualify for a “permanent” loan. Increasing borrowing costs, rising interest rates, and a weak commercial real estate market have created an opportunity in the bridge loan market. The term of a bridge loan is usually short, ranging from a few months to a…
Commercial Observer, the leading media and information services company informing and connecting commercial real estate leaders, has announced the release of its 2024 Power 100 list, its annual ranking of the industry's most influential players.Recognizing the top 100 real estate leaders creating opportunity and reinvigorating transactions in a stagnant marketSee also: Ultra-high net worth individuals and family offices are transforming real estate capital markets With the commercial real estate industry still reeling from a fourth consecutive year of unprecedented change and market hardship, a surge in transaction volume was long overdue, and the winners of Commercial Observer's 2024 Power 100…
A $21.7 million commercial mortgage-backed securities (CMBS) loan secured by the former WeWork (WE) anchor office building on Los Angeles' Hollywood Walk of Fame has been placed into special administration due to “imminent default” after loan payments fell 60 days behind, Morningstar reported. The loan, which represents 2.8% of JPMCC 2016-JP2's collateral, is secured by an 82,180-square-foot office building at 7083 Hollywood Boulevard. WeWork vacated the building in 2021, causing occupancy to fall to 16%, but the following year, Industrious, another co-working space provider, leased some of the vacant space, causing occupancy to rise to 51%, according to Morningstar. See…
Stay up to date with free updatesSimply sign up to the myFT Digest of Real Estate and have it delivered straight to your inbox.It's been more than a year since the collapse of Silicon Valley Bank, the ensuing turmoil in the U.S. banking industry, and the rise of fears about commercial real estate from a healthy boil to a full-blown boil. What's happening? Alex Skaggs has been writing about this issue a lot before she went on maternity leave, and while she's gone we decided to read Goldman's latest report on the subject, which summarises simply: “volatile, dispersed, but not…
Idaho’s rugged terrain and diverse landscapes provide the ideal playground for dirt biking enthusiasts seeking adrenaline-pumping adventures and breathtaking scenery. From high mountain trails to desert tracks, the Gem State offers various riding experiences for bikers of all skill levels. Whether a seasoned rider searching for technical challenges or a novice seeking scenic trails, Idaho has something for all skill levels. Let’s dive into some of the state’s top dirt biking trails and delve into the adventure. Boise Foothills For riders seeking scenic trails and challenging terrain close to home with urban amenities, the Boise Foothills offer a convenient and…
Late last year, the U.S. Federal Reserve paused interest rate hikes and signaled its intention to cut rates this year, brightening the outlook for global commercial real estate in 2024. But so far, no rate cuts have materialized, and many in the industry are beginning to realize that lower borrowing costs are not a sure bet. Opinions vary widely in the commercial real estate industry about how interest rates will move, with some hopeful that rate cuts remain on the Fed's agenda this year, while others are less optimistic. “At the end of '23, everyone was expecting multiple rate cuts…
To grow your wealth, which is a better strategy: investing in real estate or building a stock portfolio?Real Estate vs. StocksThe main difference between real estate investing and stock investing is that with real estate investing you buy properties and rent them out or invest in REITs (real estate investment trusts), whereas with stock investing you buy a small amount of stock in a company and wait for it to increase in value.If you're trying to choose one or the other, the good news is that you don't have to choose one or the other — many people do a…