Don't miss the headlines capturing the attention of commercial real estate professionals across the nation.
Many office towers are experiencing a decrease in value amidst financial struggles and may be in need of federal oversight to stop the sink.
Approximately $39B in mortgage-backed security office loans will go into default, according to a J.P. Morgan projection.
Office-to-residential projects have grown in interest in the hopes of revitalizing some downtown areas and empty offices. While the cost of bringing about these projects might be steep, some cities have been introducing tax incentives to help with financing.
While many CRE sectors have been struggling with plummeting sales, in Q1 2023, office market sales have dropped by 68% to $10.7B.
Unlike other finance companies, Goldman Sachs is not as apprehensive about how declines in CRE might affect the economy.
April 13, 2023 Wave of Distressed CRE Sales Coming: Colliers
Colliers found that office and multifamily properties below market value will soon see an uptick in sales.
Construction & Development
CRE insurance premiums have increased exponentially since 2021 and have been especially impactful when coupled with winter storms or hurricanes. CRE investors are advised to keep insurance costs in mind when buying CRE properties.
CRE investors have been cautious about purchasing apartments, as values have decreased. While investors bought apartments totaling $14K, the value has been at its lowest point since 2012.