Alternative, or nonbank, lenders are filling in gaps in the mortgage world where they find them, whether it be the result of increasing capital requirements for banks, consolidation in the banking sector, or a pullback by commercial mortgage–backed securities lenders. Last year alone, the five largest players in the sector collectively funded some $20 billion of interim loans. Plus, interest rate survey data from Trepp.
As job growth in the professional services sector has increased substantially over the past several years, office real estate investment trusts (REITs) have benefited from strong leasing fundamentals. However, more office construction and oversupply concentrated in major metro areas such as New York City, Houston, and Washington, D.C., continue to concern those in the market. Plus, interest rate survey data from Trepp.
Real estate investment trusts that specialize in the multifamily sector, particularly those with an exposure to the high-end sector in New York City, continue to struggle in the face of new construction. Plus, interest rate survey data from Trepp.
The departure of AR Global Investments from the nontraded real estate investment trust world, coupled with uncertainty surrounding substantial pending regulations, has put a sizable damper on the ability of the nontraded REIT sector to raise capital. According to Summit Investment Research, $4.8 billion of equity was raised by sponsors of 35 entities last year, the lowest volume in 14 years. Plus, interest rate survey data from Trepp.
Only $490.6 billion of commercial and multifamily housing mortgages were originated last year, according to a survey conducted by the Mortgage Bankers Association, 2.7 percent lower than the $504 billion of originations in 2015. The likely cause of the decrease was the 11 percent drop in property sales volume last year. Plus, interest rate survey data from Trepp.
A recent survey of investors conducted by CBRE indicated that a lack of liquidity in the commercial real estate (CRE) market should not be a concern. Last year, $895 billion of capital poured into commercial real estate globally. While that was down 9 percent from 2015, it was still the second-highest yearly volume for the sector since 2007, when just more than $1 trillion poured in. Plus, interest rate survey data from Trepp.
The U.S. hotel market has experienced significant growth over the past five years, but it is looking at a substantial slowdown as a result of the increase in the supply of rooms. The growth in supply has been picking up speed as operating fundamentals have consistently improved, but it’s no surprise that fundamentals would be soon pressured. Plus, interest rate survey data from Trepp.
Last year, $502 billion in U.S. commercial mortgages was originated. That was down slightly from the $504 billion originated the year prior and well shy of the $537 billion that the Mortgage Bankers Association (MBA) had predicted. The MBA is forecasting $515 billion of lending activity for 2017, which would top the origination record of $508 billion set in 2007. Plus, interest rate survey data from Trepp.
The overwhelming majority of hotel real estate investment trusts (REITs) are trading at prices that represent discounts to their net asset value, as has been the case for more than a year now. The thinking in some circles is that the hotel sector is approaching its cyclical peak. Plus, interest rate survey data from Trepp.
This year, real estate investment trusts (REITs) have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That is more than they raised during the previous five years. The low rates have allowed REITs to issue ten-year bonds with coupons as low as 2.75 percent. Plus, interest rate survey results from Trepp.
