Declining credit quality metrics in Commercial real estate lending pushed several banks to reduce their exposures to the sector by offloading loans related to the asset class, particularly office loans, in the second quarter. US banks’ commercial real estate loan portfolios showed signs of increasing stress During the second quarter, the net charge-off rate for…
Blackstone Inc.’s $68 billion real estate trust finds itself besieged by nine months of substantial redemption requests, all amidst a gathering storm over the commercial real estate markets. Blackstone Real Estate Income Trust is the largest institutional landlord in the world. The latest ominous signal emanating from Blackstone Real Estate Income Trust (BREIT) comes in…
Rising to new heights, housing prices have surged significantly, matched in intensity by the upward trajectory of mortgage rates. These combined forces serve as a stark indicator that the cherished concept of the American Dream, entwined with homeownership aspirations, is undergoing a profound transformation. The once-attainable notion of owning a home, intertwined with financial security…
The results of the June 2023 survey conducted by the RV Industry Association reveal a significant decline in total RV shipments. The month ended with 24,095 units shipped, showing a considerable decrease of 46.4% compared to June 2022 when 44,942 units were shipped. The overall trend for RV shipments this year has been on a…
The amount of distress in the U.S. Commercial Real Estate increased to USD 71.8 billion during the middle of the year, marking the fourth consecutive quarter of growth. Distress refers to financially troubled assets and properties taken back by lenders. In the last quarter, distress exceeded property owner and lender workouts by approximately USD 8…
Investors in commercial real estate are torn between anxiety and anticipation regarding the recent repricing of assets. Those who feel optimistic are actively seeking out assets that are likely to default and can be acquired at lower prices. The key lies in analyzing the timing of loan maturities.
The pace of growth in commercial real estate lending by banks has slowed down dramatically
PacWest and Blackstone are not the only ones who are in trouble. Regional banks like KeyBank, Charles Schwab, New York Community Bank (NYSB), Old National Bank, OZK, Bank United, and many more regional banks have heavy exposure to commercial real estate.
Nearly $900 billion of commercial real estate loans in the United States are due to expire in 2023 and 2024. These mortgages are coming due in a more challenging capital-markets climate, and some may have trouble refinancing due to rising borrowing rates, dropping prices, and a more risk-averse attitude among conventional sources of funding
Commercial Real Estate (CRE) Bubble is Ready to Burst