Holiday cheer never really infiltrated the U.S. commercial real estate finance sector.
Entering the new year, the country’s CRE capital markets continue to struggle with a general malaise that has resulted in a financing and transactional impasse.
Its troubles have been brought on by a wide assortment of symptoms: Considerably higher interest rates for fixed- and floating-rate loans; stricter and more costly lending terms; tumbling property values; waves of billions of dollars in looming debt maturities; and a more skittish banking sector that’s acutely aware of tighter regulatory scrutiny. As a result, refinancings and new loan originations have slowed to a crawl.
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