Capital markets
As report by The Wall Street Journal What's happening: U.S. prosecutors are ramping up efforts to combat commercial mortgage fraud, sending shockwaves through the $4.7 trillion industry by scrutinizing the numbers behind major property loans. Why it matters: Fraudulent property loans, based on doctored financials and
Capital markets
As reported by Bloomberg Driving the news: Distressed investors see a golden opportunity in troubled US real estate as the commercial property market continues to tumble. Private equity (PE) firms are positioning to capitalize, with 64% of their $400 billion in dry powder earmarked for North America — the highest share
Multifamily
As reported by Bloomberg Driving the news: Multifamily apartment investments boomed during the pandemic, but the tide is turning as borrowing costs surge and refinancing challenges mount. * Pandemic boom: Developers and investors capitalized on low interest rates and high rental demand, constructing new units and renovating older complexes. * Current crunch:
Capital markets
As reported by the Federal Reserve Bank of St. Louis Driving the news: Commercial real estate (CRE) faces significant hurdles, from a looming refinancing crisis at higher interest rates to deteriorating market fundamentals like rising vacancies and declining valuations. Office properties are particularly hard-hit, struggling with increased hybrid and remote
Capital markets
As reported by CRED iQ The big picture: Loan modifications have been jumping this year. Key Numbers: * 12-Month Modifications: $22 billion in loans modified by May 31, 2024. * 2024 YTD: Over $9 billion in modifications, compared to $16.8 billion for all of 2023. * Monthly Average: $1.8 billion in
Retail
As reported by Forbes Driving the news: The retail real estate landscape continues to evolve, shaped by shifting consumer preferences and a limited supply of quality retail spaces. Key trends include a rise in wellness-focused tenants, the popularity of neighborhood centers, and a competitive market driven by scarce supply. Wellness
Industrial
As reported by The Wall Street Journal The big picture: Prologis, the world’s largest industrial property company, reported better-than-expected revenue for the latest quarter but cautioned about a slowdown in the warehousing market as customers focus on reducing logistics costs. The logistics property giant cut its annual outlook after
Office
As reported by Bloomberg The big picture: US office vacancy rates are expected to rise to 24% by 2026, up from 19.8% in Q1 2024, according to a Moody’s report. This surge could lead to a $250 billion hit in commercial property values. Why it matters: The shift
Capital markets
As reported by The New York Times Why it matters: This signals growing distress in the commercial real estate market, hit by high interest rates and low occupancy rates post-pandemic. The big picture: Wall Street banks are selling off portfolios of commercial real estate loans, anticipating that landlords of vacant