Downward angle icon Downward angle icon. Exterior of 55 Broad Street in Manhattan, which is being converted from office to residential. Joe Woolhead Commercial real estate prices are in the midst of their biggest decline in half a century, according to the IMF. Real estate prices have typically remained stable or fallen slightly during previous interest rate hike cycles. Today's price slump is due to a sudden tightening of credit and a trend towards remote work that is driving down office prices. The International Monetary Fund said U.S. commercial real estate prices are experiencing one of the sharpest declines in…
Author: Private Lending Agent
Rising interest rates, the prevalence of remote work, and the dominance of e-commerce sellers have combined to batter the commercial real estate market over the past few years. In this new environment, vacancy rates for office and retail space have soared, crimping owners, rents have plummeted, and borrowing costs have soared. As a result, U.S. commercial real estate prices have fallen 11% since the Federal Reserve began raising interest rates in March 2022, the worst drop in more than 50 years, the IMF reported last week. The outlook for the industry is now so bleak that Howard Lutnick, the billionaire…
In this issueWhile the economy continues to expand and added 2.7 million jobs in 2023, signs point to a normalization in the labor market as job growth is expected to moderate in 2024. MOREWhile mortgage rates have moved sideways since mid-December, housing continues to be impacted by higher mortgage rates with total home sales on track to be the lowest since 2012. MOREFacing higher borrowing costs, borrowers are paying more discount points to buy down their mortgage rate, but they may not be getting the benefit. MORE Recent developmentsU.S. economy: According to the latest estimate of U.S. economic growth for Q3…
Two industrial buildings in Anaheim recently sold for $18.5 million. (Photo courtesy of CBRE) One of my predictions going into 2024 is that we will see increased buying activity, especially from institutional investors. You may be wondering why. Here are three reasons: First: Most industrial land has not been traded since mid-2022 and transactions need to be made to balance the allocation. Second: This year we should get a clear answer on one of the indicators that determines the value of commercial real estate: rent. Third: As interest rates fall, government bonds become less attractive and real estate becomes more…
Seksan Mongkhonkhamsao/Getty Images Key Takeaways A secured business loan requires collateral to back the loan. Unsecured business loans typically require a personal guarantee, but secured loans can have lower interest rates and higher borrowing limits. A secured loan may be a good choice for those with a lower credit score or looking for more competitive loan terms, while an unsecured loan is a good choice for those without assets. Small business loans can be secured or unsecured. Secured loans require collateral to back the loan. Unsecured business loans do not require collateral. Lenders may offer one or both of these…
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To help you understand what's happening in the commercial real estate sector and what's expected to happen in the future, our experienced Kiplinger Letter team will keep you updated with the latest trends and predictions (get your free copy of the Kiplinger Letter or subscribe). By subscribing, you'll be the first to know about all the latest news, although many (but not all) of our predictions will be published online a few days later. Here's the latest news…Let's look at commercial real estate. This year, 2024, is going to be a mixed bag. Sectors such as office space will struggle…
According to a recent SEC filing, Stuart Rothstein, President and CEO of Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI), sold 40,000 shares of the company's stock on January 16, 2024. The transaction was performed at average price, with the total value of the shares sold being .Apollo Commercial Real Estate Finance Inc is a real estate investment trust that originates, acquires, invests in, and manages primarily commercial first mortgage loans, subordinated loans, commercial mortgage securities, and other commercial real estate related debt investments.Over the past year, insiders have sold a total of 120,000 shares and haven't bought any shares in…
On January 18, Commercial Property Executive held its annual Influence Awards ceremony, recognizing the year’s most notable developments, transactions, deals and people. The event, held online, kicked off with a keynote address from Jeffrey DeBoer, president and CEO of The Real Estate Roundtable, who received the inaugural CPE Influence Awards Lifetime Achievement Award. The panel of judges deciding the awards included BGO’s Ryan Severino, Katrina Yin of JDS Development Group, Dustin Reed of Clemson University and Jay Epstein of DLA Piper, who awarded a total of 55 bronze, silver and gold awards across 23 different categories. Applications for the 2024…
Surging rates and shrinking origination volumes have driven the US mortgage market into a trough. Demand for mortgage refinancing will likely remain weak as long as rates hold near current levels. The outlook for purchase mortgages—mortgages used to finance the purchase of a home, in contrast to refinancing—is somewhat stronger, with volumes expected to at least remain steady through the cycle. On top of this, the mortgage landscape has changed significantly over the past five years as customers continue to embrace digital channels and as retail banks lose market share to nonbanks. The mix of a down market and new…