There have been some signs over the past few years that commercial real estate is headed for a major downturn. Office vacancy rates hit a 30-year high of roughly 18% in 2023. Large and small companies alike have responded to the new norm of remote and hybrid work by drastically reducing space, with some even terminating leases early.But one of the most dire figures that shows the doom headed for commercial real estate is the total amount of mortgages maturing in 2024. The Mortgage Bankers Association projects that of the $4.7 trillion in outstanding commercial mortgages held by lenders and…
Author: Private Lending Agent
The renovated exterior of Franklin Tower, a 24-story former office building and now luxury residential building in downtown Philadelphia. Courtesy: Gensler/PMC Property GroupCommercial real estate mortgage lending is down 47% through 2023, according to the Mortgage Bankers Association.All sectors saw pullbacks, with health care and office real estate leading the decline.Rising interest rates have increased borrowing costs and eroded confidence in the industry.Commercial real estate mortgage lending fell 47% in 2023, according to a report from the Mortgage Bankers Association.The healthcare and office sectors led the decline, with new loan originations falling 67% and 65%, respectively. Industrial, multifamily, retail and…
Downward angle icon Downward angle icon. Skyline of Detroit, Michigan. Sean Pavone/Shutterstock The Basel III proposals would stifle commercial real estate lending, said MBA CEO Bob Brooksmit. The proposed regulations would require banks to hold more capital to protect against loan losses. “Basel III could be the end of bank real estate lending as we know it,” Brooksmit said. The head of the Mortgage Bankers Association said this week that proposed rules requiring bank lenders to maintain thick capital buffers to protect against losses would intensify ongoing turmoil in the real estate market. MBA CEO Bob Broeksmit slammed the proposal,…
There have been some signs over the past few years that commercial real estate is headed for a major downturn. Office vacancy rates hit a 30-year high of roughly 18% in 2023. Large and small companies alike have responded to the new norm of remote and hybrid work by drastically reducing space, with some even terminating leases early. But one of the most dire figures that shows the doom headed for commercial real estate is the total amount of mortgages maturing in 2024. The Mortgage Bankers Association projects that of the $4.7 trillion in outstanding commercial mortgages held by lenders…
Running your own business can be satisfying with the perks of being your own boss, higher potential of success, and independence. But it also has its own challenges and stresses. One of the most significant challenges is protecting your business from liabilities or losses, which is why small business insurance is so important. Whether you’re the victim of a data breach or a customer is injured on your premises, the right insurance policy provides peace of mind and keeps your business operational. To help you find the best insurance for your company, we evaluated 22 insurance companies based on their…
CREMI is a standardized index, and each CBSA and asset type combination has its own index based on its history. Zero represents the long-term index average of CRE performance in a given region and asset type. Values above zero indicate that the market based on the selected variables is stronger than the long-term average from a risk perspective. Conversely, values below zero indicate that the market is weaker than the long-term average. See the “About CREMI” tab for more information. CREMI Score Trends (CBSA Perspective) The graph below shows the median CREMI score for all CBSAs (black line) and a…
A vacant commercial real estate sign stands along 55th Street in Boulder, Colorado, on Friday, Feb. 2, 2024. (Matthew Jonas/Staff Photographer) John Gittelson | Bloomberg About 20% of the outstanding U.S. commercial and multifamily real estate debt, or $929 billion, will mature this year, necessitating refinancing or property sales. The total amount of loans coming due increased 40% from the $659 billion the Mortgage Bankers Association initially estimated, but the surge was due to loan extensions and other delays rather than new business. With the Federal Reserve signaling an end to interest rate hikes, more deals are likely to close…
Hearing the term “CLO” may conjure up dark memories of the financial crisis, when another financial acronym wreaked havoc on the U.S. economy. CRE CLOs (Commercial Real Estate Backed Loan Obligations) are the successor to CDOs, and that's not a misnomer. They're considered a new and improved debt tool, and are distinct from CMBS, another real estate acronym.The Real Deal's Deconstruct podcast spoke with Stewart McQueen, attorney and CLO expert at Dechert, to analyze CLOs and explain their importance in the real estate industry, specifically the multifamily sector. First, what are CLOs? Collateralized loan obligations are debt securities that allow…
Good customer service is essential for any real estate agent, but being polite and knowledgeable about properties isn't enough to retain customers over the long term. So how do you make sure buyers and sellers remember you when they think “real estate”? Here are 10 ways to wow your customers and set yourself apart from your competitors. 1. Build genuine relationships Real estate is a business, but that doesn't mean you have to limit your relationships to professional spheres. Make an effort to get to know your buyers and sellers personally. Ask about their families, jobs and hobbies. If you…
Share SAN DIEGO (February 12, 2024) – The Mortgage Bankers Association (MBA) today released its year-end rankings of commercial and multifamily mortgage servicers by transaction volume as of December 31, 2023 at the 2024 Commercial/Multifamily Finance Convention & Expo. Topping the list of companies is Wells Fargo Bank NA with $669 billion in Master Primary Servicing, followed by PNC Real Estate/Midland Loan Services ($646 billion), KeyBank National Association ($465 billion), CBRE Loan Services ($410 billion) and Berkadia Commercial Mortgage LLC ($405 billion).Among servicing companies that own or buy mortgage-backed income real estate servicing in the United States, Wells Fargo, PNC/Midland,…