CMF Newslinks Archive

“The market absorbed the heavy interest rate increases of 2018, but interest rate uncertainty in the year ahead could impact the current level of investor interest.”–Berkadia Executive Vice President and Head of Production Ernie Katai.

“In some cases the presence of flexible-space tenants–and the building improvements they initiate–may benefit overall property values, causing some lower-classified buildings with flexible space to perform as if they were Class A assets.”–CBRE Americas Head of Occupier Research Julie Whelan.

“We believe that more capital is available to move into real estate debt and equity than at any other time. The next wave of investment is not a matter of if or when, it’s just a matter of price.” –Avison Young Chair and CEO Mark Rose.

“Mortgage bankers look to 2019 as another strong year for the commercial and multifamily mortgage markets. The majority of top firms expect that strong appetites from both lenders and borrowers will drive commercial mortgage originations higher.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“We foresee compelling opportunities in secondary markets, given that we haven’t experienced cap-rate convergence in those markets or even in many of the crowded primary markets.”–CBRE Global Chief Economist and Global Head of Research Richard Barkham

“Income [as opposed to property appreciation] is expected to account for $4 out of every $6 of total returns in 2018, $5 of every $6 of total returns in 2019 and for all of the positive contribution to returns in 2020. But even with some of the recent economic uncertainty, investors see commercial real estate incomes remaining strong.”–MBA Vice President for Commercial Real Estate Research Jamie Woodwell.

“Autonomous vehicles may have the greatest impact on U.S. real estate markets since mass adoption of the car and expansion of the federal highway system.”–CBRE Senior Vice President of Digital Enablement and Technology David Eisenberg.

“Commercial and multifamily mortgage delinquency rates are extremely low right now. The delinquency rate for loans held on bank balance sheets set a new series low, and delinquency rates for loans held by life companies or guaranteed by Fannie Mae and Freddie Mac are all below 10 basis points.”–MBA Vice President for Commercial Real Estate Research Jamie Woodwell.

“Rising interest rates took some wind out of the market’s sails…The [commercial mortgage-backed-securities] and bank lending markets were the hardest hit. Meanwhile, lending backed by multifamily properties and for the government-sponsored enterprises continued to grow.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“Because inflation has remained in line with the Federal Reserve’s target of 2.0 percent, consumer and business confidence should keep the office market healthy well into 2019.”–Transwestern Research Director Ryan Tharp.