Nearly 1,000 business and civic leaders gathered at the Broward Workshop’s 17th annual State of the County Forum on Wednesday to review the county’s economic progress and discuss plans for the future.
Held at the Broward County Convention Center, the event highlighted last year’s economic achievements while addressing pressing concerns such as job growth, housing affordability, and infrastructure development.
Employment Trends and Workforce Needs
Despite business expansion and growth in 2024, Broward County has 7,945 fewer jobs than it did at the same time last year. With an estimated 92,000 new jobs needed by 2030 to keep up with population growth, this decline presents a challenge.
However, the county still boasts a job surplus, with 35,152 open positions compared to 31,278 job seekers.
Infrastructure and Transportation Initiatives
Broward County Mayor Beam Furr emphasized the county’s commitment to improving public transit and infrastructure. One key initiative is a proposed commuter rail line extending to Deerfield Beach, aimed at alleviating road congestion and enhancing mobility.
Additionally, the ongoing Convention Center expansion and adjacent hotel project are proving to be valuable investments, with a strong lineup of industry events set to generate thousands of hotel stays in the coming years.
Furr also acknowledged the contributions of public sector employees, contrasting Broward’s approach with companies that prioritize productivity metrics over workplace empowerment.
The Housing Affordability Crisis
One of the biggest challenges facing Broward County remains access to affordable housing. More than half of residents are considered housing burdened, meaning they spend over 30% of their income on rent or mortgage payments.
“There are multiple factors driving this issue—an influx of Northerners moving to Florida, hedge funds purchasing starter homes, and limited land for new development,” Furr explained. “All of these put immense pressure on the housing market and workforce.”
The median home price in Broward reached approximately $454,000 in February, marking a 7% increase from the previous year.
Population Growth and Economic Mobility
Florida Chamber of Commerce President and CEO Mark Wilson warned that rising costs are driving younger residents out of the state. Among those aged 20 to 29, more people are leaving Florida than moving in—an indicator that job seekers, new families, and first-time homebuyers are struggling with affordability.
At the same time, Florida continues to experience substantial income migration. Between 2021 and 2022, the state gained $36 billion in net income, with $2 billion flowing into Broward County alone. The Florida Chamber projects the county’s population will grow by 261,000 by 2030, with the state adding 2.8 million residents overall.
Despite this economic growth, challenges remain. The state still has 713,000 children living in poverty, including 63,000 in Broward.
A Call for Collaboration
Wilson emphasized that bipartisan cooperation will be essential in addressing key issues such as infrastructure, housing, and education to support Broward’s growing population and business environment.
“People are tired of the political divide,” he said. “If we need to create 80,000 more jobs in Broward by 2030 to lift people out of poverty and support small businesses, we should all agree that this is a priority—regardless of political affiliation.”
With a strong economy, increasing population, and ongoing investments in infrastructure, Broward County stands at a pivotal moment. The challenge now is ensuring sustainable growth that benefits businesses and residents alike.
Source: SFBJ
Loan Modifications Nearly Double As Extend & Pretend Tactics Surge
Loan modifications—often labeled “extend-and-pretend” strategies for obvious reasons—have become a regular tool in the commercial real estate (CRE) sector. And according to a new analysis from CRED iQ, their use has increased sharply.
CRED iQ reviewed trends in modifications across various loan types, including CMBS, SBLL, CRE CLO, and Freddie Mac loans. The analysis, which looked at both recent trends and data over the past three years, found a significant uptick in these modifications.
Between March 2024 and March 2025, the volume of modified loans nearly doubled, jumping from $21.1 billion to $39.3 billion—an 86.3% increase. Just last month, $2 billion worth of modifications were made across 47 loans, marking the highest activity since May 2024.
It’s important to note that the data doesn’t cover commercial bank CRE loans, which are a major portion of the overall market. Even so, the figures provide insight into growing reliance on loan extensions. Modification sizes have ranged from as little as $11.3 million in July 2022 to as much as $2.4 billion in July 2023.
Many of these extensions stem from loans initially extended in 2024, now creating a wave of upcoming maturities. Expectations that Federal Reserve rate cuts might ease refinancing pressures have largely faded, leaving borrowers to manage rising debt costs on their own. In this environment, banks are eager to avoid labeling loans as troubled, so modifications are often the preferred route.
One example CRED iQ highlighted is Chicago’s Willis Tower. The 3.8 million-square-foot building had a $1.33 billion interest-only loan originally due in March 2022. After multiple one-year extension options, a recent modification extended the due date further—this time to March 2028. Despite this, the tower is performing decently, with an 83.1% occupancy rate and a debt service coverage ratio of 1.32.
So what does all this mean in a market without the relief of lower interest rates? CRED iQ suggests these trends reflect a broader change in CRE financing. The nearly $40 billion in modified loans is a signal of both caution and adaptability in the sector.
Source: GlobeSt.
Lenders Forcing Landlords To Swallow Higher Insurance Coverage Or Face Distress
Commercial real estate distress is growing as more property owners struggle with their loans, and rising insurance costs are adding another challenge, especially for small landlords.
Insurance brokers and lenders predict that more borrowers will face force-placed insurance, which lenders apply when a borrower’s coverage lapses or is inadequate. This type of insurance is often 10 times more expensive than regular coverage, placing a heavy burden on small property owners.
Lenders impose force-placed insurance to protect their investments when a property is insufficiently covered against risks like natural disasters. This insurance, which typically covers fire and wind damage, is added to the loan, increasing monthly payments. Force-placed insurance becomes especially prevalent during times of financial distress, such as the 2008 Great Recession, and could become a bigger issue if the real estate market worsens.
The average cost of insuring commercial properties and apartments has risen sharply, leading to higher premiums that may force borrowers into bankruptcy or foreclosure. Some borrowers opt to keep force-placed insurance, as it’s cheaper than market-rate coverage. While force-placed insurance doesn’t directly trigger foreclosure, failure to pay these premiums can add to the loan balance, worsening the situation for both borrowers and lenders.
For properties with securitized loans, force-placed insurance can also lead to special servicing, where payments rise drastically. Though lenders are required to give borrowers 45 days’ notice before imposing force-placed insurance, many still struggle to secure appropriate coverage, especially smaller property owners who lack the resources of larger portfolios.
In the end, rising insurance premiums contribute to the growing financial strain on property owners, further complicating the already challenging landscape of commercial real estate.
Source: Bisnow
Loan Extensions Reach New Highs At $384B
Lenders are continuing to extend loans, with $384 billion now set to carry over into 2025. This figure surpasses the $270 billion in loan extensions recorded for 2024, according to data from the Mortgage Bankers Association (MBA).
According to Aaron Jodka, research director for capital markets at Colliers, loan extensions now make up 40% of debt maturing this year. Colliers estimated this based on the MBA’s 2024 loan maturity report. While the analysis isn’t exact—since loans can be refinanced, renegotiated, or newly issued—it highlights the growing trend of loans not being paid off upon maturity.
Commercial Mortgage-Backed Securities (CMBS) and banks are the most likely to extend loans, Jodka noted. Of the CMBS loans maturing in 2025, 54%—equivalent to $125 billion—were initially due in previous years. Similarly, 44% of bank loans, or $199 billion, were carried over from past due dates. In contrast, life insurance and agency loans were largely paid off, reducing total maturities by $8 billion.
Multifamily, office, and alternative asset classes, such as self-storage and manufactured housing, are the top recipients of loan extensions. Office loans accounted for $85 billion in extensions, or 45% of the $187 billion in 2025 maturities. Multifamily properties had the largest extension volume at $97 billion, roughly one-third of the $310 billion in loans set to mature in 2025. Other assets saw extensions totaling $87 billion.
Among asset classes, industrial properties had the highest percentage of 2025 maturities carried over from prior years, with 55% being pushed forward. Given the sector’s strong fundamentals and high transaction volume, this trend is seen as a logical approach.
Jodka anticipates that a significant portion of 2025 maturities will be further extended into 2026 or beyond.
Source: GlobeSt.
CRE Debt Challenges Escalate, Threatening Banking Sector
The U.S. banking system remains under pressure due to significant exposure to the commercial real estate (CRE) market, exacerbated by persistently high interest rates. As a result, banks face increasing risks as potentially troubled loans approach maturity, according to an analysis by Florida Atlantic University (FAU).
Since 2023, troubled debt restructuring for commercial construction, multifamily housing, and both owner-occupied and non-owner-occupied mortgages has surged, tripling to $18 billion in the fourth quarter of 2024. This marks a sharp increase from $6 billion recorded in the second quarter of 2023.
While more than half of this distressed debt stems from non-owner-occupied nonfarm and non-residential properties, the FAU report highlights “serious deterioration” in multifamily and commercial construction loans.
As of the fourth quarter, 59 out of the 158 largest U.S. banks face CRE exposure exceeding 300% of their total equity capital. FAU’s U.S. bank exposure screener identifies the most vulnerable financial institutions, including Flagstar Bank, Zion Bancorp, Valley National Bank, Synovus Bank, Umpqua Bank, and Old National Bank.
Across banks of all sizes, 1,788 institutions now have CRE exposure surpassing 300%, up from 1,697 in the third quarter. Nearly 1,000 banks have exposure exceeding 400%, 504 exceed 500%, and 216 surpass 600%. Meanwhile, the aggregate industry-wide CRE exposure remains at 132%, unchanged from the previous quarter.
Regulators have been urging banks to reduce their exposure, but doing so without signaling financial weakness presents a major challenge, according to Rebel A. Cole, a finance professor at FAU’s College of Business.
This strategy allows lenders to postpone refinancing in hopes that interest rates will decline, making repayment more manageable in the future.
Source: GlobeSt.
Broward Jobs, Affordable Housing, Transportation Among Top Priorities For County
Nearly 1,000 business and civic leaders gathered at the Broward Workshop’s 17th annual State of the County Forum on Wednesday to review the county’s economic progress and discuss plans for the future.
Held at the Broward County Convention Center, the event highlighted last year’s economic achievements while addressing pressing concerns such as job growth, housing affordability, and infrastructure development.
Employment Trends and Workforce Needs
Despite business expansion and growth in 2024, Broward County has 7,945 fewer jobs than it did at the same time last year. With an estimated 92,000 new jobs needed by 2030 to keep up with population growth, this decline presents a challenge.
However, the county still boasts a job surplus, with 35,152 open positions compared to 31,278 job seekers.
Infrastructure and Transportation Initiatives
Broward County Mayor Beam Furr emphasized the county’s commitment to improving public transit and infrastructure. One key initiative is a proposed commuter rail line extending to Deerfield Beach, aimed at alleviating road congestion and enhancing mobility.
Additionally, the ongoing Convention Center expansion and adjacent hotel project are proving to be valuable investments, with a strong lineup of industry events set to generate thousands of hotel stays in the coming years.
Furr also acknowledged the contributions of public sector employees, contrasting Broward’s approach with companies that prioritize productivity metrics over workplace empowerment.
The Housing Affordability Crisis
One of the biggest challenges facing Broward County remains access to affordable housing. More than half of residents are considered housing burdened, meaning they spend over 30% of their income on rent or mortgage payments.
The median home price in Broward reached approximately $454,000 in February, marking a 7% increase from the previous year.
Population Growth and Economic Mobility
Florida Chamber of Commerce President and CEO Mark Wilson warned that rising costs are driving younger residents out of the state. Among those aged 20 to 29, more people are leaving Florida than moving in—an indicator that job seekers, new families, and first-time homebuyers are struggling with affordability.
At the same time, Florida continues to experience substantial income migration. Between 2021 and 2022, the state gained $36 billion in net income, with $2 billion flowing into Broward County alone. The Florida Chamber projects the county’s population will grow by 261,000 by 2030, with the state adding 2.8 million residents overall.
Despite this economic growth, challenges remain. The state still has 713,000 children living in poverty, including 63,000 in Broward.
A Call for Collaboration
Wilson emphasized that bipartisan cooperation will be essential in addressing key issues such as infrastructure, housing, and education to support Broward’s growing population and business environment.
With a strong economy, increasing population, and ongoing investments in infrastructure, Broward County stands at a pivotal moment. The challenge now is ensuring sustainable growth that benefits businesses and residents alike.
Source: SFBJ
Rising Insurance Costs Squeeze Commercial Real Estate
A recent analysis by Moody’s reveals that for certain commercial real estate (CRE) properties, insurance expenses have doubled as a percentage of revenue since 2018.
Despite these rising costs, rent growth in many CRE sectors has helped offset the impact on net revenue and property values, albeit to a limited extent.
Over the past several years, escalating insurance rates—driven by inflation and the increasing effects of climate change—have been a growing concern. As previously reported by GlobeSt.com, insurance brokerage Marsh McLennan Agency has warned that property owners with significant exposure to last fall’s hurricanes could see rate increases between 50% and 100%.
Moody’s Findings
Moody’s analysis focuses on properties backing CMBS loans, categorized by insurance costs as a percentage of revenue. Only properties with data spanning 2018 to 2023 were included in the study.
Implications for Buyers, Lenders, and Investors
Although extreme cases remain a small subset, the findings signal a crucial need for buyers, lenders, and investors to prioritize insurance and physical risk assessments in due diligence. For asset managers, these cost increases can complicate budgeting, influence exit strategies, and even prompt requests for waivers on minimum coverage requirements from lenders.
On average, properties required an additional 1.3% annual rent growth just to maintain stable net operating income (NOI) and value. Properties in the worst-affected category faced an estimated 12% decline in NOI and value. For lenders, this equates to an implied loan-to-value (LTV) increase of nine percentage points, while the debt service coverage ratio (DSCR) could drop by 0.25x. Refinanced loans with higher interest rates would experience even steeper DSCR declines due to increased borrowing costs.
Geographic and Sector-Specific Trends
Geography plays a notable role, with the Gulf Coast—particularly Texas and Florida—showing a higher concentration of properties experiencing severe insurance rate growth. However, the issue is widespread, affecting metros across the East, Midwest, and South.
Among CRE sectors, multifamily properties saw the sharpest increase in insurance costs, rising from 7% of revenue in 2018 to 14.3% in 2023. Retail properties followed closely (8% to 12.8%), with hotels and offices both increasing from 5% to 10.4%. Industrial properties experienced the least impact, climbing from around 5% to 7%.
Interestingly, property size did not consistently correlate with higher insurance costs. However, despite rent growth helping to mitigate some of the burden, the median insurance growth rate in the top 100 metros has significantly outpaced revenue growth over the past six years.
As insurance costs continue to rise, stakeholders in the commercial real estate market will need to navigate an increasingly complex financial landscape, factoring in these growing expenses into their investment and operational strategies.
Source: GlobeSt.
CRE Distress Tracker Hits Decade-High Of $107B
MSCI’s U.S. distress tracker for Q4 2024 reached $107.0 billion, marking a significant 24.3% jump—or $20.9 billion—from the previous year. This is the biggest annual increase in a decade, though it’s still just over half the peak seen during the Global Financial Crisis. Looking ahead, this figure sets the stage for 2025.
On a positive note, the pace of distress growth has been easing since Q4 2023. In simpler terms, while distress is still rising, it’s doing so more slowly—the rate of acceleration is tapering off. Markets might prefer an instant drop in distress, but this slowdown is a critical and necessary step worth noting.
It’s also worth distinguishing between the total value of distressed assets and their sheer number. While large distressed loans grab attention, they don’t always signal a broader trend. MSCI pointed out that by the end of 2024, the number of distressed properties was only about a quarter of what it was at the height of the GFC.
Breaking it down by sector, office properties led the pack with $51.6 billion in distress—nearly half the total. Retail followed at $21.4 billion, multifamily at $17.1 billion, hotels at $12.7 billion, other categories at $2.6 billion, and industrial at $1.7 billion. Despite ranking third, multifamily was the main force behind the overall distress growth in Q4.
In commercial real estate circles, many have been waiting for distressed property sales to become a major opportunity. MSCI reported that these sales made up 2.5% of last year’s total deal volume—modest but notable as the highest share since 2015. For perspective, that figure hit nearly 18% back in 2010.
Looking at potential distress—issues like tenant struggles or property liquidations—offers another layer. Office properties face $74.7 billion in potential distress, but multifamily tops the list at $108.7 billion, accounting for 34.9% of the total risk pool.
The dynamics differ sharply between office and multifamily. Hybrid work has emptied out many offices, driving up vacancies and leaving owners scrambling to cover costs. Multifamily, on the other hand, isn’t seeing a wave of vacant units—people still need places to live, even if landlords hit rough patches. This contrast could make the distress picture trickier in the months ahead.
Source: GlobeSt.
What Defines The Best CRE Investments Today?
Fluctuating interest rates and shifting demand are key in today’s commercial real estate market, according to Integra Realty Resources’ latest trends report. The Viewpoint 2025 survey collected insights from nearly 600 valuation advisors across the U.S. and the Caribbean.
Anthony Graziano, CEO of Integra Realty Resources, emphasized that fundamental value is driven by cash flow, prime locations, and realistic tenant demand, not speculation. He urged investors to focus on effective management and sustainable rent levels for long-term value, especially in markets with strong job growth and favorable migration trends.
Private investors are diversifying into alternatives like senior housing, self-storage, build-to-rent single-family homes, and data centers. Graziano also highlighted that the best real estate investments go beyond returns and create lasting community impact. Mixed-use developments, such as Nashville Yards and Richmond’s Diamond District, are reshaping underutilized spaces and meeting market demand.
Regarding national policy, Graziano noted that President Trump’s “America First” approach favors real estate growth, but could disrupt previous policies. This includes a potential shift in the federal workforce’s office occupancy and a rise in domestic production due to reshoring trends.
Retail success hinges on consumer confidence, with potential impacts from tax policies and trade tariffs. Retail spaces focused on essentials, like grocery-anchored centers, are likely to perform better in economic volatility.
Multifamily properties remain steady, but affordability concerns could affect investment, especially in markets with high inventory. Graziano cautioned investors to remain flexible and focus on markets with strong job growth and steady population increases.
Source: CPE
Extend-and-Pretend Drives Record Modifications
The long-term outlook for commercial real estate (CRE) loans, particularly those in the office space sector, seems to be facing mounting challenges.
According to the data from CRED iQ, there’s been notable growth in loan modifications over the past few years, which reflects the ongoing strain on property owners and the broader CRE market. The numbers show a shift, where properties that might have been able to handle their debt a few years ago are now being pushed to restructure their loans due to economic pressures like high interest rates and changing market conditions.
In particular, examples like the Energy Centre in New Orleans and 17 State Street in New York highlight how properties are struggling with refinancing and the pressure to avoid defaults. Even though certain properties still show solid metrics like occupancy and debt service coverage ratios (DSCR), refinancing remains a significant hurdle, especially with the Fed’s rates holding steady for the foreseeable future.
What stands out from the article is the potential domino effect caused by the combination of tighter lending conditions, higher interest rates, and a volatile bond market. This environment could cause refinancing and loan modifications to become more challenging, especially for lower-tier properties like Class B/C offices and malls. Additionally, the question remains of how long lenders will be willing to keep modifying loans, as the hope for a return to lower rates might fade with the Fed’s current stance and concerns about inflation and national debt.
Do you think there’s a chance that CRE loans might stabilize if the economy shifts, or do you expect the difficulties to persist longer than anticipated?
Source: GlobeSt.
PwC Says This Is The ‘Hottest Piece’ Of Real Estate In 2025
Investing in commercial real estate (CRE) can be challenging, with many looking for assets that promise high returns. For 2025, one sector that stands out is data centers, which PwC’s Bill Staffieri, alongside his partner Ricardo Ruiz, referred to as the “hottest piece of real estate right now” during their presentation at the ULI New York: Real Estate Outlook 2025 event at NYU Stern School of Business.
The AI Impact
Staffieri’s bullish stance on data centers is closely linked to the rise of artificial intelligence (AI), which is creating significant demand for these facilities.
Major Investments in Data Centers
Tech giants are rapidly ramping up their investments in data centers to capitalize on this growing demand. One of the biggest moves has been EDGNEX Data Centers, a subsidiary of DAMAC, which recently announced a $20 billion investment in data centers and related platforms. This investment marks DAMAC’s first venture into the U.S. market.
Amazon is also making waves, with its Web Services division planning to invest around $11 billion in AI infrastructure and cloud computing in Georgia, aiming to expand its data center presence and create 550 new jobs.
Meta is following suit, announcing a $10 billion AI-focused data center project in Richland Parish, Louisiana, one of the state’s largest-ever private investments.
With so much activity surrounding the sector, Staffieri added, “If I won the lottery, I’d invest in data centers. I believe this trend will continue for years.”
Don’t Overlook Retail and Self Storage
While data centers are generating a lot of attention, Staffieri also sees potential in the retail sector. While retail has had to adapt in the face of e-commerce growth, there’s still a solid outlook for certain types of retail.
Additionally, Ruiz highlighted another sector to watch: self-storage. Despite facing some recent cap rate compression, self-storage remains strong. “It’s largely institutionalized, with strong demand,” he explained.
On the other hand, Ruiz expressed concerns about the life sciences sector, which he ranked as one of the weakest in terms of investment potential. “Oversupply in many markets is really affecting this space,” he noted.
As we head into 2025, it’s clear that while data centers are drawing the most attention, there are still promising opportunities in retail and self-storage, while caution is advised for life sciences investments.
Source: GlobeSt.