Commercial Real Estate - Real Estate Investor Pulse

Shaky Ground for Commercial Real Estate’s ‘Extend and Pretend’ Strategy

June 23, 2023 Mark Paul Cervantes Comments Off

High-ranking figures in the real estate finance industry gathered at the Marriott Marquis in New York’s Times Square in June.– Commercial property transactions were halted, leading to decreased demand for new loans.– Loans made during […]

Commercial real estate gets even bleaker with $64 billion in property now classified as distressed

June 23, 2023 Mark Paul Cervantes Comments Off

Distress is spreading in the US commercial real estate industry, with the amount of troubled assets climbing to nearly $64 billion in the first quarter of this year. The amount of distressed assets rose 10% […]

Why you shouldn’t worry about commercial real estate

June 16, 2023 Mark Paul Cervantes Comments Off

Commercial real estate could well be the next big shoe to drop. But even if it is, the systemic repercussions are likely to be small. That’s the message being sent not only by Fed chair Jay Powell on […]

US Banks Facing $1,450,000,000,000 in Commercial Real Estate Exposure As Lenders Prepare to Sell at a Loss: Report

June 14, 2023 Mark Paul Cervantes Comments Off

American banks are preparing to sell portions of their commercial real estate debt at a loss, according to a new report. Although most debtors are up to date on payments, banks are looking to clean […]

Should the Indian real estate market be worried about an impending global meltdown?

June 12, 2023 Mark Paul Cervantes Comments Off

While residential demand is largely domestic in nature, the commercial segment’s office occupier profile is largely IT/ITeS companies with clients in the West. If the West slips into a recession and those clients cut budgets, […]

M&A drives some major US lenders’ commercial real estate balances higher

June 9, 2023 Mark Paul Cervantes Comments Off

Some US banks greatly expanded their exposure to commercial real estate loans in recent months as a result of M&A transactions. Commercial real estate (CRE) loans at US banks rose to $2.436 trillion as of […]

Owner of Two of San Francisco’s Largest Hotels Pulling Out of City: ‘Path to Recovery Remains Clouded’

June 7, 2023 Mark Paul Cervantes Comments Off

The owner of two of San Francisco’s largest downtown hotels is stopping mortgage payments and going into foreclosure on the properties, stating that the city faces “major challenges” and that reducing exposure to the market […]

Interest-Only Loans Helped Commercial Property Boom. Now They’re Coming Due.

June 7, 2023 Mark Paul Cervantes Comments Off

With nearly $1.5 trillion in commercial mortgages coming due over the next three years, many landlords are vulnerable to default in part because of how their loans are structured. By June 6, 2023 12:01 am […]

S&P Global: Commercial real estate loan delinquency rate ‘rises sharply’

June 6, 2023 Mark Paul Cervantes Comments Off

There’s trouble ahead in the commercial real estate space—especially in the office sector, which has been plagued by the shift to remote work. In the first quarter of this year, the commercial real estate loan delinquency rate increased […]

US offices are under pressure, but real estate may still offer a hedge for investors

June 2, 2023 Mark Paul Cervantes Comments Off

Commercial real estate – and office buildings in particular – are going through a challenging transition: Climbing interest rates are rippling through the sector at the same time occupants are seeking out newer, more sustainable […]

Rocket lost money last year, so why are its shares up?

February 25, 2024 Comments Off

Rocket Companies, the parent of Rocket Mortgage, lost money in 2023, but executives have expressed confidence about a big turnaround by touting investment in artificial intelligence (AI) to accelerate the company’s profitability. Despite reporting […]

Industry experts are closely watching delinquency rates, insurance costs

February 25, 2024 Comments Off

Mortgage servicers, regulators and economists are closely watching the delinquency rates for Federal Housing Administration (FHA) loans following a spike in the fourth quarter of 2023. Industry experts say that although there’s a correlation […]

Jobs data sends mortgage rates higher

February 3, 2024 Comments Off

Today we got a jobs Friday hat trick! Better headline jobs were reported, with positive revisions and more robust wage growth, which caught bond traders off guard and sent bond yields and mortgage rates […]