Investors that swooped in on South Florida’s multifamily boom now face elevated interest rates, high insurance costs and plateauing rents. Compounding the problems are inflation, which has prompted rent delinquencies, and a hefty development pipeline that’s slightly tempered demand, prompted concessions and led rents to plateau or slightly decline in some submarkets.
If everything beyond the value of the property is on the line, to what degree will the asset class be considered more trouble than it’s worth? Lenders are finding that trusting markets and their ability to take back property may no longer be wise.
The Scariest Thing CRE Investors Might Hear: Recourse Loans Only Read More »
Left for dead by Covid-19 in 2020, the CRE market roared back to life in 2021 with record-breaking sales of $809 billion. But the arrival of unrestrained inflation and soaring interest rates may signal the party’s over. Being sensitive to economic cycles when buying, selling or hanging on is essential for success in commercial real estate. CLICK ON THE HEADLINE FOR MORE
Commercial Real Estate—Buy, Sell Or Hold? Read More »
