As GlobeSt.com has previously reported, higher financing costs are not the only fiscal strain on CRE in general and multifamily specifically. Operating expenses have risen sharply and are unlikely to recede with a receding inflation tide. Prices will stay up.
That's bad news for many operators because the increases pare away at net operating income, which puts pressure on debt service coverage ratio. That makes lenders uncomfortable and can derail attempts to refinance.
Trepp has been looking at where the biggest impacts on multifamily have been, like the metros facing the biggest property tax increases. And now they have another report on property insurance.
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