EPISODE · Jan 10, 2025 · 57 MIN
Will High Rates Ruin the Commercial Real Estate Comeback?
from The Gray Report Podcast · host Spencer Gray
Amid news of a powerful upswing in apartment demand, rising investor interest, and increasing consumer confidence, the rising yields for 10-year treasuries are a dark cloud that promises to make CRE investment interesting, if not straightforwardly difficult for investors looking for a larger spread between cap rates and debt costs. Likewise, CRE borrowers with loan maturities in 2025—perhaps even some who faced loan maturities in 2023 and were already granted extensions from their lenders—could face an even tougher path. There is optimism among multifamily investors, but 2025 will have its share of challenges alongside opportunities. Sources discussed in this episode: RealPage: “Resounding Appetite for Apartments Overtakes Oversupply Fears in 4th Quarter 2024” - https://www.realpage.com/analytics/4q-2024-data-update/ Harvard Joint Center for Housing Studies: New Projections Anticipate a Slowdown in Household Growth and Housing Demand” - https://www.jchs.harvard.edu/blog/new-projections-anticipate-slowdown-household-growth-and-housing-demand Cushman & Wakefield: “10 Critical Questions for 2025” - https://www.cushmanwakefield.com/en/united-states/insights/10-critical-questions MSCI: “Investment Trends in Focus: Key Themes for 2025” - https://www.msci.com/www/research-report/investment-trends-in-focus-key/05245039511 Moody’s Analytics: “Q4 2024 Preliminary Trend Announcement” - https://www.moodyscre.com/insights/cre-trends/q4-2024-preliminary-trend-announcement/ For the latest multifamily news from across the internet, visit the Gray Report website: https://www.grayreport.com/ Download Gray Capital's latest report: https://www.graycapitalllc.com/report/ Sign up for our free multifamily newsletter here: https://www.graycapitalllc.com/newsletter DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.
What this episode covers
Amid news of a powerful upswing in apartment demand, rising investor interest, and increasing consumer confidence, the rising yields for 10-year treasuries are a dark cloud that promises to make CRE investment interesting, if not straightforwardly difficult for investors looking for a larger spread between cap rates and debt costs. Likewise, CRE borrowers with loan maturities in 2025—perhaps even some who faced loan maturities in 2023 and were already granted extensions from their lenders—could face an even tougher path. There is optimism among multifamily investors, but 2025 will have its share of challenges alongside opportunities. Sources discussed in this episode: RealPage: “Resounding Appetite for Apartments Overtakes Oversupply Fears in 4th Quarter 2024” - https://www.realpage.com/analytics/4q-2024-data-update/ Harvard Joint Center for Housing Studies: New Projections Anticipate a Slowdown in Household Growth and Housing Demand” - https://www.jchs.harvard.edu/blog/new-projections-anticipate-slowdown-household-growth-and-housing-demand Cushman & Wakefield: “10 Critical Questions for 2025” - https://www.cushmanwakefield.com/en/united-states/insights/10-critical-questions MSCI: “Investment Trends in Focus: Key Themes for 2025” - https://www.msci.com/www/research-report/investment-trends-in-focus-key/05245039511 Moody’s Analytics: “Q4 2024 Preliminary Trend Announcement” - https://www.moodyscre.com/insights/cre-trends/q4-2024-preliminary-trend-announcement/ For the latest multifamily news from across the internet, visit the Gray Report website: https://www.grayreport.com/ Download Gray Capital's latest report: https://www.graycapitalllc.com/report/ Sign up for our free multifamily newsletter here: https://www.graycapitalllc.com/newsletter DISCLAIMERS: This video does not constitute professional financial advice and is for educational/entertainment purposes only. This video is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.
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Will High Rates Ruin the Commercial Real Estate Comeback?
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