News & Analysis

Higher interest rates continued to stall the US commercial real estate market in 2023, but alternative lenders and their investors are hopeful that opportunity will knock in 2024.

Walker & Dunlop’s chairman and chief executive takes a deep dive on the commercial real estate market and discusses the growth of the firm.

The interest rate outlook is still critical to the recovery of commercial real estate.

Mezzanine lenders fill out the capital stacks on a pair of Bank OZK West Coast industrial construction loans this week; Cain International is betting on office construction lending and lines up a $500 million loan for a Beverly Hills mega-project; Shorenstein faces foreclosure after defaulting on a New York office tower; and more in today’s Term Sheet, exclusively for our valued subscribers.

The commercial real estate market, which has been in a value correction cycle for the past two years due to higher interest rates and cap rates, will see this correction continue until interest rates settle.

Yarbrough said he believes the market is coming closer to bottoming out and this creates strong investment opportunities

Morgan Stanley Real Estate Investing was also a part of the group that funded the loan for sponsor Bridge Industrial.

The financing is notable given the paucity of capital allocated to the office sector as well as a decline in construction lending over the past year to 18 months.

JPMorgan has originated a $500m senior loan to help build the mixed-use development One Beverly Hills.