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Beth Mattson-Teig

Beth Mattson-Teig is a freelance business writer and editor based in Minneapolis. She specializes in commercial real estate and finance topics. Mattson-Teig writes for several national business and industry publications and is the author of numerous white papers.

Experts from Hines, JBG Smith, and Gensler anchored a McKinsey & Company panel, Reimagining mixed-use districts: strategies for new developments in an ever-changing world, at the 2024 ULI Fall Meeting last month. Panelists explored innovative ideas and case studies to illustrate how to make complex mixed-use projects work in today’s market.
After a quiet first half of 2024, CMBS originations increased 59 percent in Q3 on a year-over-year basis, according to the Mortgage Bankers Association’s Quarterly Survey.
Released during the Institute’s 2024 Fall Meeting in Las Vegas, Emerging Trends in Real Estate® North America predicts Dallas-Fort Worth, Miami as leaders in 2025
Industry CPPI data suggests that property prices may be at—or near—bottom. The three major indexes from MSCI Real Assets, CoStar, and Green Street all showed an increase in CPPI in August. After rising 1.6 percent in August, Green Street’s recently released Commercial Property Price Index remained unchanged in September. Green Street’s all-property index—a measure of pricing for institutional-quality properties—is up 3.3 percent year-to-date through September.
Affordability and low inventory are continuing to create pain points for the housing market. According to newly released data from the National Association of REALTORS (NAR), pending home sales are at their lowest level since the Great Financial Crisis. Existing-home sales for August dropped 4.2 percent from a year ago to a seasonally adjusted annual rate of 3.86 million. Although the Fed has kicked off its rate-cutting cycle with a 50-basis-point reduction at its September 18 meeting, high interest rates are still a big hurdle for homebuyers and housing developers.
Commercial real estate loans totaling almost $1.8 trillion are set to mature before the end of 2026, according to Trepp. One sign of the accompanying stress is the commercial mortgage–backed security (CMBS) special servicing rate, with its latest numbers inching up to 8.2 percent, the highest since June 2021.
RXR CEO and Chairman Scott Rechler, in a recent ULI members-only webinar with ULI Foundation Chair Faron A. Hill, described the challenges and opportunities ahead as an epic, unavoidable storm. “That hurricane … eventually, it’s going to hit land,” Rechler warned. “The question is when it hits, how hard it hits, and where it hits the hardest.”
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In an economy where higher interest rates continue to squeeze the livelihood of commercial real estate market participants everyone is keeping a close watch on economic indicators that could signal a shift in Fed policy.
It’s no secret that construction starts are down in the current market where higher interest rates are making it tough to pencil out new projects. But, for some developers, the bigger problem these days is sourcing equity versus debt.
Despite headwinds, debt funds continue to fill the void in commercial real estate financing.
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