The month of March was full of breaking news from the Silicon Valley Bank collapse to loans reaching maturity date and declining job openings. The commercial real estate industry continues to keep us on our toes. Don't miss out on the top read CRE headlines in March.
Capital Markets
Within the upcoming federal budget, President Biden offered plans to do away with 1031s and carried interest — which have been beneficial for the real estate industry.
March 13, 2023 What The Historic Collapses Of SVB, Signature Bank Mean For Commercial Real Estate Investors
Both the Federal Reserve and the federal government have been making moves to alleviate the potential chaos following the SVB and Signature Bank collapse.
CRE owners and lenders have concerns over how the additional interest rate hike in March 2023 may impact their assets and the CRE industry.
Brokers
Given the economic uncertainty, in order to secure deals with clients, some brokers may
plan to stay in constant communication with them.
March 1, 2023 Brokerages Turn To Other Areas Of Business As Leasing, Capital Markets Revenues Plummet
With deals being impacted by interest rate hikes, some CRE brokerages are shifting
their focus on other avenues of business, such as property management.
Office
Economists are forecasting that due to the bank collapses, the loan expiration may be
detrimental to some CRE owners’ assets.
$270B of CRE loans are reaching their maturity date in 2023. Because many offices are sitting empty, some CRE professionals are worried about the $80B office loans maturing.
Industrial
While e-commerce was performing very well during the pandemic, the demand hasn’t been as strong. One way for the industrial sector to potentially see more activity is by transferring their manufacturing from China to the U.S..
Outdoor storage space has been rising in popularity and seems attractive for people
who are looking to invest in an outdoor space to house trucks. However, investors
would benefit from learning more about the sector before investing.
Construction
The construction industry has experienced a 49% decline in job openings between Dec. 2022 and Jan. 2023. The plummeting figure came as a surprise to some economists, considering the U.S.’s ongoing construction needs.
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