The Lede
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Fed Decision Makers Wrestle With So-Called Natural Rate
Wall Street Journal, June 12, 2016--Torry, Harriett
Signs point toward the Federal Reserve's "new normal" interest rate being much lower than in the past, which has broad implications for when the Fed should tighten monetary policy, how quickly and how far.
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MBA: Commercial Loans Strong; Few Late-Pays
GlobeSt.com, June 9, 2016--Bubny, Paul
The Mortgage Bankers Association's Jamie Woodwell cites "strong fundamentals and strong property prices, as well as still-low interest rates" underpinning commercial mortgages.
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Commercial Property Gets Shakeup From Millennials Who Shun Stuff
Bloomberg, June 9, 2016--Chiglinsky, Katherine
Retail property landlords should counter the threat from e-commerce by turning to dining and entertainment to attract a younger generation of customers, said MetLife Inc.'s asset manager.
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With Economic View Hazy, a Wait-and-See Fed Message Expected
Associated Press, June 13, 2016
A wait-and-see tone is expected when the Federal Reserve issues a statement on Wednesday. The Fed will likely echo the message the Fed Chair Yellen sent in a speech last week: while the U.S. economy looks fundamentally solid and higher rates will come eventually, too many uncertainties exist to say when the Fed might raise rates again.
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A Slimmer Vornado Realty Looks Toward a Final Cut: Washington, D.C.
Wall Street Journal, June 14, 2016--Brown, Eliot
For six years, real-estate giant Vornado Realty Trust has been lopping off chunks of its empire in a bid to slim down from a sprawling property conglomerate to one more svelte and focused. Now it appears to be nearing a final excision: Washington, D.C.
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MBA’s Stevens: Recap and Release is Reckless
National Mortgage Professional, June 14, 2016--Hall, Phil
The head of the nation's most prominent mortgage banking trade group is warning that proposals to rebuild the capital reserves of the government-sponsored enterprises and then terminating their federal conservatorship would result in unprecedented damage to the housing finance market.
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Commercial Debt Rises in the First Quarter
Scotsman Guide, June 14, 2016--Whitman, Victor
Three of the four major investors in commercial mortgages increased their debt holdings in the first quarter, the Mortgage Bankers Association reported.
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More Evidence Insurers Are Refinancing Loans Out of CMBS Conduits
National Mortgage News, June 14, 2016--Bisbey, Allison
There's been plenty of speculation about insurance companies crowding out commercial mortgage bond investors this year. Volatility in capital markets in the first quarter, combined with new and impending regulations, have made it difficult for firms that underwrite loans for sale to securitization conduits to compete with so-called portfolio lenders.
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Energy Downturn Hammers Commercial Real Estate
Houston Chronicle, June 13, 2016--Sarnoff, Nancy
The fate of two prominent commercial real estate deals spotlights the accelerating impact of oil's price collapse across the Houston economy.
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Online Auction Platforms Move Further into Mainstream Sales
National Real Estate Investor, June 15, 2016--Mattson-Teig, Beth
Auction companies saw a spike in popularity as lenders worked to clean up the mess from the bursting of the real estate bubble in both residential and commercial real estate.
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Online Retail Gives Industrial REITs a Lift
Wall Street Journal, June 14, 2016--Grant, Peter
As online retail has grown, few expected industrial real estate investment trusts to be hurt. But it hasn't been clear how much they would benefit.
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Dealmaker of the Week
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News and Trends
Small-Cap Rents Rise at Fastest Pace in Years
Small-cap rents surged during the first quarter as small property landlords benefited from extremely tight markets, reported Boxwood Means, Stamford, Conn.
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Trepp: Stabilizing Economic Outlook Driving Office Performance
Recent economic volatility presented obstacles for office sector expansion, but steady employment and oil price growth along with heightened international market stability led to a calmer outlook in recent weeks, said Trepp, New York.
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CBRE: Commercial Lending Market Resumes Momentum After Volatile Q1
Commercial lending markets, briefly derailed by credit market volatility in early 2016, got back on track by early April, reported CBRE, Los Angeles.
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CIT’s Galligan: Prepare for Coming Regulations
Commercial real estate is seeing ample capital, low cap rates and high valuations at the moment, but coming regulations could change that, said CIT Real Estate Finance President Matt Galligan.
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MBA Warns of Scam Involving Association Logo
The Mortgage Bankers Association yesterday warned its members of an online scam involving emails featuring the MBA logo offering money in exchange for personal information.
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Fitch, Morningstar: CMBS Delinquencies Tick Up Again
The U.S. commercial mortgage-backed securities delinquency rate rose in May for the second month, reported Fitch Ratings, New York.
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