Cap Rates Adjust As The 10-Year Treasury Yield Fluctuates
The question is, by how much will they fall?
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The question is, by how much will they fall?
Whether properties have unrealized gains or losses depends on when loans originated.
Fed rate cuts will help, but it’s unclear how much more the banks can expect in the future.
Things are improving but still far off pre-pandemic baselines.
Wage growth also came in stronger than anticipated.
Despite improving economic factors, the cost of borrowing money continues to weigh on the industry.
A backlog of capital that has been on the sidelines is likely to begin to loosen.
Despite market fluctuations, many investors and property owners report stable real estate values and rents, with expectations that commercial real estate (CRE) will remain steady for the rest of the year.
In August, CMBS losses saw a significant decline, dropping from $119 million in July to $47.2 million, affecting nine loans with an average loss severity of 55.20%.
Despite hopes that rate cuts might ease the refinancing pressures faced by many in commercial real estate (CRE), the actual impact remains uncertain.
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
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admin@RJ-Realty.com