It has only been a week since the Federal Deposit Insurance Corporation closed the First Republic Bank and sold it to JP Morgan Chase Bank, orchestrating the third forced shutdown or sell-off of a U.S. bank in about six weeks.
Marcus & Millichap has come to a few conclusions about the event and its impact on the commercial real estate market, namely that the banking outlook may be improving in the long-run. "If additional bank closures can be avoided, or addressed as rapidly as First Republic, and the Fed holds interest rates flat, the consistency would help financiers and investors more readily calibrate their underwriting — the first step toward narrowing the buyer/seller expectations gap," it said.
The implications for commercial real estate may be relatively benign.
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