Commercial Real Estate Financing in 2024
Commercial Observer
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Will the new year bring a thaw in commercial real estate financing? Analysts, lenders and brokers think so. Though it won’t be the deliquescing many had hoped for. Meanwhile, also for today, news of an office building sale in South Florida.
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— Tom Acitelli, Deputy Editor
CRE Finance May Have Hit Bottom in 2023. What's Next?
If you were waiting to hear a collective sigh of relief from commercial real estate capital markets, then you probably heard it on Dec. 13, 2023. On that day, Federal Reserve Chairman Jerome Powell announced that the federal funds rate — the benchmark, short-term interest rate — would remain at 5.25 to 5.5 percent for the foreseeable future, and indicated that as many as three rate cuts could be in store in 2024. Within hours, the 10-Year Treasury — the benchmark, long-term interest rate used in most commercial real estate transactions — fell below 4 percent for the first time in six months (after reaching 5 percent in October). The immediate drop of the 10-year Treasury, combined with the concomitant rate pause in Washington, pointed to commercial real estate capital markets having hit the proverbial bottom with only one direction to go in the new year.
Meyers Accesso Buys Boca Office Building
Meyers Accesso bought an office building within The Park at Broken Sound, a mixed-use development in Boca Raton, Fla., for $25 million, according to the sellers, Alchemy-ABR Investment Partners and Breakers Capital Partners. Called The Atrium at Broken Sound, the 100,000-square-foot office building sits on 10.5 acres at 6111 Broken Sound Parkway NW, just south of The Park at Broken Sound’s country club, which houses a championship golf course, and the Office Depot headquarters. The three-story building is 74 percent leased to tenants that include law firm Sachs Sax Caplan, managed care service provider Genex Services and office technology provider TGI Office Automation, according to a representative for Meyers Accesso.
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