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The firm also believes CMBS delinquencies could rise to top 4%. 
While borrowers are already feeling the impact of higher interest rates, the low DSCRs will present a particular problem as refinancing looms. 
Rent compromises, amenities are keeping occupancy afloat with room for mezz opportunities.
Borrowers are tapping into ample liquidity for acquisitions and developments while lenders are being adequately compensated for risk.
The commercial property market needs to focus less on cosmetic changes to properties and more to legitimate energy efficiency and sustainability.
Defensive investing in the current low interest rate environment was among the central themes at the annual real estate conference of our sister publication PERE in New York.
Rising interest rates, CMBS volatility and the likelihood of higher spreads are among the factors borrowers in the US need to think about, writes Ryan Krauch of Mesa West Capital.
Lending to a singular alternative real estate sector means a firm must be ready to underwrite a property type’s unique risk and demonstrate specialist expertise.

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