Vacancy and rental levels could be on a longer-than-anticipated road to recovery, especially in western markets.
Coronavirus shutdowns have pushed nearly $25bn of US CMBS loans to the brink of delinquency, and the worst is yet to come.
With tenants now defaulting on rent payments, new regulations will play a critical role in lowering the number of casualties in the industry.
Otherwise, US private real estate mogul Tom Barrack says, widespread margin calls could trigger the next financial crisis – and it’s hard to disagree.
The Colony Capital boss says the US property loan market is on the brink. Lenders in Europe should take note.
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.
Rising hedging costs have diminished appetite for American real estate in favor of European.