Commercial real estate has undergone major stresses and changes through and after the pandemic. That’s translated to pressures and challenges ahead for lenders, says S&P Global Market Intelligence in a report about trends and opportunities shaping up for 2025.
One factor is interest rates. The Federal Reserve has cut 75 basis points from the federal funds rate between the September and November FOMC meetings. That is progress for shorter-term rates. If longer-term rates also started to fall, it could mean good news for CRE borrowers, but yields seem to be holding above the 4.3% to 4.4% range. For many properties, particularly in the “embattled” types, that may not prove enough of a reduction.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
