CRE investment sales have been sinking and disappointing, as MSCI's overall capital trends analysis for August 2023 showed. As it has been showing for months.
Associated with the sales doldrums are the credit ones. There's a common assumption that getting financing is next to impossible, with many banks facing risk from CRE loan exposure and tightening lending standards, along with questions of whether the government-sponsored enterprises might not hit their lending caps.
But MSCI basically said to hold on. "Off-the-cuff statements from industry participants might lead one to believe that the commercial real estate markets are in freefall with no debt available," the firm wrote. "The reality is more complex, however, with some sectors facing illiquidity in the debt portion of the capital stack and others simply facing more expensive debt. Each condition has different implications for investment activity and performance in the coming years."
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