Interest Rate Cap Costs Are Surging Again
That’s going to make waiting for any eventual interest cuts harder.
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That’s going to make waiting for any eventual interest cuts harder.
Problematic conditions should start tapering off after 2025, leaving strong possibilities for rent growth and opportunities to “buy high-quality properties below replacement cost while achieving attractive long-term yields.”
But the net total has reached more than $88.6 billion with a potential of almost $206 billion.
The MBA survey, which does not include data from smaller and mid-sized depositories, recorded $306 billion in loans closed by dedicated commercial mortgage bankers in 2023, a 49 percent decrease from $595 billion in 2022.
The real estate data tracking firm also noted that California, New York, and Florida were the states with the most foreclosures.
Sellers are still in denial about bringing their pricing in line with the new status quo on cap rates.
Finance can be as psychological as mathematical, and that could have a negative impact on the cost of capital.
CRE debt didn’t matter much to bank stocks in 2007, but there’s a negative correlation now.
“You have to take seriously the possibility that the next rate move will be upwards rather than downwards.”
Trying to tease out exactly what is due when, and to whom, is confusing.
Broker/President Ronald W. Osborne represents both buyers and sellers of commercial properties of all asset classes and types, focusing primarily on privately owned properties in South Florida, ranging in value from $1 to $10 million.
Sperry – RJ Realty
Phone:
954.381.0412
Email:
admin@RJ-Realty.com