Commercial Real Estate News | July 2024
Terrydale Capital
Jul 29, 2024 4 Min read
The commercial real estate market is an ever evolving landscape with developments coming in daily. In this digest, we will break down some notable updates over the past month and some insights into what can be coming up in the near future.
US Market and Lending Developments
Market Developments
- Multifamily Distress: Multifamily distress nearly triples within the CMBS market. This is especially exacerbated by value-add borrowers with floating-rate loans.
- Mounting Distress: CRE-wide distress has risen to $94.2B in Q2 of 2024 with $10.6B in new distress and $8.6B resolved
- Student Housing: Student housing rent growth softens. As pre-leasing showed growth, it remains at a slower pace compared to previous years.
- Bank Squeeze: Future rate cuts could put the squeeze on banks before any positive effects take root.
- Smaller Banks Avoid Pressure: Compared to larger banks feeling the weight of the commercial real estate market on their shoulders, smaller community banks see a different story.
- CMBS Spikes: 2024 has seen an increase of nearly three-times in CMBS loan issuance compared to 2023.
- Multifamily Challenges: Property valuations and appraisals serve as one of the sore spots for multifamily investors.
- Deutsche Bank Slides: Deutsche Bank feels heavy pressure in CRE as their stock continues to slide from CRE losses.
- Nowhere To Go But Up: Experts believe that the slide in volume and pricing has hit bottom in Q2 and will begin to go up yet again.
- Best Metro Markets for Multifamily:
- Dallas - Plano - Irving | Texas
- Austin - Round Rock | Texas
- Phoenix - Mesa - Scottsdale | Arizona
- Houston - The Woodlands - Sugar Land | Texas
- New York - White Plains | New York
- Atlanta - Sandy Springs - Roswell | Georgia
- Denver - Aurora - Lakewood | Colorado
- Nashville - Davidson - Murfreesboro - Franklin | Tennessee
- Washington - Arlington - Alexandria | DC, Maryland, Virginia
- Seattle - Bellevue - Everett | Washington
Current Lending Rates
- Banks / Credit Unions: 6.15% - 10.25%
- Debt Fund / Bridge: 6.75% - 11.00%
- Agency: 5.50% - 8.00%
- Private Money / Hard Money: 9.00% - 15.00%
- CMBS: 6.50% - 10.95%
- LifeCo: 6.00% - 10.00%
- SBA: 8.00% - 10.00%
In Conclusion
As always, this is a scratch on the surface of the constantly shifting sands in the commercial real estate industry. Savvy investors should keep their eyes closely fixated on the market in order to take advantage of opportunities that may arrive at a moment's notice. Terrydale Capital constantly remains abreast of the changes in the market in order to best capitalize on opportunities as they present themselves. With over 1,800 of the nation’s top lending institutions and extensive market expertise, our team is always ready to help our clients achieve success in their commercial real estate investing journey. When you need the right team behind you, contact us today.
Partner With Terrydale Capital for Your Debt Financing Needs
When it comes to debt financing, understanding the right timing, process, and options is crucial. At Terrydale Capital, we provide a comprehensive range of commercial loan solutions tailored to meet your business's unique needs.
Success!
Product has been created successfully!
Headquartered in Dallas, Texas, Terrydale Capital is a leader in commercial real estate financing. We have close relationships with the nation’s top banks, lenders & family offices allowing us to provide the most competitive financing solutions in the market.
