In commercial real estate, all eyes remain on the office market. That is despite the fact that multifamily mortgage debt – accounting for $2.0 trillion of the $4.6 trillion of total outstanding — is almost three times as large and office accounts for just 17 percent of total CRE debt.
Category: News and Trends
Fitch: Commercial mREIT Sector Faces Further Pressures in 2023
Fitch Ratings, New York, said commercial mortgage real estate investment trust ratings will continue to be challenged by post-pandemic occupancy rates, “with growing recessionary risks and further deterioration of commercial real estate fundamentals.”
MBA Education Webinar Office Doldrums: Challenges, Opportunities and Nuances July 24 (New Date)
Office markets and performance are on the minds of market participants as technology layoffs and space reduction announcements drive the year’s news cycles along with rising interest rates. Join MBA Education and industry practitioners as they explore opportunities and challenges in the office sector.
CMF Quote of the Week: July 6, 2023
“Commercial real estate is a vast and varied market – with buildings, and loans, spread across property types, markets, classes, vintages and much, much more. While changes in interest rates, uncertainty about property values and questions about some property fundamentals have led to significant slowdowns in sales and mortgage origination activity in recent quarters, it’s important to remember that not all properties will be affected in the same ways.”
–From MBA’s Chart of the Week, Office Property Sales Volumes and Values
MBA Education Webinar Office Doldrums: Challenges, Opportunities and Nuances July 24 (New Date)
Office markets and performance are on the minds of market participants as technology layoffs and space reduction announcements drive the year’s news cycles along with rising interest rates. Join MBA Education and industry practitioners as they explore opportunities and challenges in the office sector.
FHA Increases Threshold for Large Multifamily Loans to Be Eligible for Standard Underwriting
The Federal Housing Administration on Wednesday increased the threshold at which a multifamily loan is considered a large loan from $75 million to $120 million. The Mortgage Bankers Association commended the move.
Dealmaker: Newmark Secures $947M for Park La Brea Apartments in Los Angeles
Newmark Group, New York, secured a $947 million loan for Los Angeles’ Park La Brea, the largest apartment community on the West Coast.
May CPPI Indexes Show Large Drops From 2022
MSCI, New York, reported its RCA CPPI National All-Property index dropped 11.2% year-over-year and 1.2% from April, as commercial property pricing for all major sectors continued to post annual declines in May.
City-by-City Remote Trends Continue to Affect Office Vacancy Rates
CommercialEdge, Santa Barbara, Calif., reported that due to a variance in remote and hybrid work, some cities’ office markets remain more vulnerable than others, affecting metrics such as vacancy rates, rental prices, sales and pipelines.
Freddie Mac Multifamily: Apartment Investment Market Index Rises
Freddie Mac Multifamily reported its Apartment Investment Market Index rose by 5.3% in the first quarter but decreased year over year, with the annual index down 16.6%.