At the end of March this year, bank regulators announced a change to rules that were implemented after the financial collapse a decade ago to reign in reckless bank lending. This rule will relax regulations on commercial real estate lending, allowing “more deals to go ahead without an independent appraisal of the property’s value.” Some worry …
Multifamily and industrial loan seekers are more likely to receive a loan than other type of commercial project thanks to California’s high demand for these spaces. There is a housing shortage and an e-commerce boom in southern California so strong that demand is increasing even while interest rates are going up. Lenders are anxious to …
These Two Industries Lead the Commercial Lending Market Read More »
In cities nationwide, housing markets are tightening amid shrinking inventories while new construction projects have slowed and mortgage rates have been on the rise. Fundamentals in multifamily and industrial look good, but why the chatter of a lending pullback? Some experts worry skyrocketing leasing and construction costs are setting markets up for the next recession. …
Other commercial real estate submarkets tend to get flashy headlines and press coverage. Take warehousing, whose strong growth is the talk of real estate investors. However, savvy investors are taking more notice of one particular industrial submarket: self-storage. Its investment prospects have quietly performed well for an extended time period, and its positive fundamentals indicate …
6 Things CRE Investors Should Know About Self Storage Opportunities Read More »
Real estate investors and developers like the future outlook for multifamily properties. While vacancy rates fluctuate due to new supply coming online and changing demands, a broad view shows California vacancy rates remaining fairly stable. However, some developers are finding it more challenging to land project financing for new multifamily construction. Why is this and …
Home property renovation is always a tricky business. Things get even trickier in the luxury residential market. Renovating to sell a luxury property is not a typical fix and flip. Luxury buyers don’t have the time to design their home’s details, but they still want the quality touches standard in a high-end home. In this scenario, …
The Federal Reserve is ready to reduce its $4.5 trillion balance sheet of mortgage-backed securities, government bonds, and other assets carried over from the financial crisis. Even though the Fed did not raise interest rates in its September policy meeting, it hinted it could still do so before the year’s end. If this happens, it …
What a Fed Interest Rate Hike Means for Cap Rates Read More »
Commercial investors looking to debt finance their redevelopment or adaptive reuse project often consider bridge loans or a commercial mortgage-backed security (CMBS.) The type of financing that will work best for you depends on factors inherent in the investment’s purpose and the nature of these two financing avenues. How can you tell which one is …
Typically, bridge loans are not considered ideal for a new construction project. After all, they’re intended as a short-term financing option, which translates to higher interest rates. That’s why short-term re-financing and renovation acquisitions tend to be a better fit for bridge loans. However, there are some situations where bridge loans might make sense for …
Changes to the financial market activity are making some real estate investors concerned about capitalization rates. Recent quarterly data shows a downward trend across markets, including Los Angeles. Nationally, cap rates in single-tenant net leases decreased across asset classes in Q3 2017 to 6.11 percent, near historic lows of 6.10 set in Q3 2016. Office …
