Debt Liquidity Solid Across CRE Markets
- Lower Treasury yields and narrower lender spreads are pushing fixed CRE mortgage rates lower.
- Ratios for debt service coverage and loan-to-value stay constant.
Lenders Are Engaging In CRE Transactions?
- Lending volumes from banks and credit unions are rising.
- Investors in CMBS bonds are shown a robust desire for lending, particularly in the hospitality industry.
- Life insurance firms are aggressively pursuing low-risk agreements with reliable sponsors.
Conditions Are Ripe For Investors To Act
- The Fed may decide not to lower rates in late 2024 if an election occurs.
- Although interest rates have decreased, cap rates remain high.
- Investors most likely have a small window of opportunity when interest rates and cap rates coincide to clear the market.
