Capital Markets

The GSA must cut leases, which will likely negatively impact CMBS and CRE CLO loans.

Cap rates climb for most property types in Q4 CMBS lending.

Some 31% of hard maturity CMBS loans may face distress sales or alternative financing.

Multifamily and industrial lead investment preferences, with retail and office gaining traction.

After a rougher second half of 2024, any change for the better is welcome.

Investors are looking beyond just the interest rate.

Lower interest rates and market stability have renewed developer confidence, but the market is still in recovery.

CRE charge-offs will continue but most banks should be able to absorb the losses.