Beacon Real Estate Services LLC’s Post

YBS Commercial cuts rates on semi-commercial offering by up to 0.14% Landlords will benefit from a rate of 7.35% (was 7.49%) up to 70% LTV, and a rate of 7.30% (was 7.39%) up to 60% LTV.

Steep borrowing costs due to high interest rates and a tight lending environment may push more retail landlords to turn to equity to finance new development and for refinancings: https://bit.ly/47u2L3v #commercialrealestate #realestate #realestateinvesting #commercialrealestateinvesting #retail #retailrealestate #interestrates #equity #commercialrealestatedevelopment #financing

Tick, tick, tick. . . commercial and retail real estate sectors continue their post-Covid slide as default rates keep on increasing. "Office loans made up roughly 35% of the newly special serviced and delinquent loans in July rated by KBRA at $898.4 million. Retail property loans came in second at 26.4%, or $683.4 million, the report said. Mixed-use properties used for both retail and office came in third at 23.7%, or $613.9 million." #bankruptcy #restructuring #chapter11 #CRE #realestate #retailrealestate

📉🏡 Despite steady cash rates, property purchases are on the rise! With whispers of potential cuts looming, buyers are seizing the opportunity. Confidence is up, reflected in a surge of pre-approvals and first-home buyers entering the market. #PropertyInvestment #MarketTrends #HomeLoans #RayneFinance https://lnkd.in/gNbJA3Tc

The office market could bring the most serious issues. For example, more than $17 billion of commercial mortgage-backed security (CMBS) office loans are coming due in the next 12 months, double the 2023 volume. Among those, 75 percent have certain characteristics that could make them hard to refinance, according to estimates from Moody’s. That can include properties with canceled leases, vacant buildings or other cash-flow problems. https://lnkd.in/gqhXmgR7 #ccim #ccimwa #office #CMBS #financing #loans

𝟮𝟬𝟮𝟯 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗜𝗻𝘀𝗼𝗹𝘃𝗲𝗻𝗰𝗶𝗲𝘀 𝗛𝗶𝗴𝗵𝗲𝘀𝘁 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗜𝗻 𝟯𝟲 𝗬𝗲𝗮𝗿𝘀 It took a while for the Bank of Canada’s interest rate hikes to take effect, but 2 years & 9 increases later we have achieved peak pessimism in the market. Business sentiment is currently worse than it was when the pandemic hit, and close to being where it was during the Great Recession. On February 2nd the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) released the following key business insolvency stats: -Annual business insolvencies surged by 41.4% in 2023. -Business insolvencies rose 34.7% in the fourth quarter of 2023 compared to the previous quarter. -Business insolvency filings increased 51.6% in the fourth quarter of 2023 compared to the same quarter of 2022. -Consumer insolvencies in 2023 rose 23.0%, the highest rate of increase since 2009 -Annual consumer insolvency filings for 2023 increased 23.0%, the fastest rate of increase in 14 years, highlighting the increasing financial pressures faced by Canadians. What do we expect from our commercial real estate investments?  Multifamily - Expect the multifamily sector’s rent growth to increase due to severe lack of supply and ongoing population growth driven by immigration. Industrial - Warehouse and distribution properties continue to benefit from the rise of e-commerce; however, expect the industrial sector to soften as demand for goods and services tapers. Rent growth is projected to grow in 4% range in 2024. Retail - Consumer spending is expected to soften as many Canadian credit card debt piles-up. Momentum for the sector is flat with asking rent growth projected in the mid-1% area over the next two years. Office - After hitting vacancy rates in the high teens, we expect continued distress for the office sector throughout 2024 as companies continue to downsize their footprint. It is still expected that older Class B & C building within downtown cores will likely remain the most vulnerable cohort. So, in all these asset classes, most long term contractual leases with tenants should shelter investors from the current volatility in the economy. The key for landlords is to vet the strength of their tenant base; stay in communication, ask to view current financials. Until interest rates have been sufficiently lowered to reinvigorate business activity, weaker transaction volumes are likely to persist for investment deal activity. 2024 will see more ‘cash-flush’ investors to start coming off the sidelines and pick-off discounted opportunities as insolvencies continue to take its toll on the demand for certain types of non-essential real estate. Take advantage of a free 15 minute consultation to discuss how we can customize a plan to reach your financial goals through ‘hands-off’ investing in our client Passive Investing Program. Visit our website to connect with us and watch the video to learn more. #paramountrealestategta #commercialrealestate

Marketplace Finance Deal of the Week Scenario: Our client had a heritage listed pub site in Sydney that had been sitting untouched for the past year. They were in the process of finalising a Section 34 amendment to the existing DA and were seeking funds for costs to complete the development and refinance away from its current lender. Challenges: The site had a previous owner that was no longer wanting to be involved so they had to amend the ownership structure and refinance away in time before the expiry of their existing facility. They also had difficulties finding comparative sales to base the valuations on given the unique nature of the development. Solution: We found them a lender who was prepared to take on the construction funding debt geared to a level above what other lenders would typically accept it at. In addition to this we were able to work closely with the valuer to find comparable sales that enabled the valuer to reach the figure that was going to get them over the line. visit - marketplace.finance to find out more about how we can assist your business and increase your revenue.

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Prime Rate has risen from 3.25% in January 2022 to 8.5%. What problems does this create for commercial real estate investors? And what steps should be taken?  Rising Cost of Borrowing: With Prime interest rate nearly tripling, the cost of borrowing for commercial real estate investors with floating rate loans has significantly increased. #apartments #BisonFinancialGroup #commercialconstruction #commercialrealestatefinance #commercialrealestateinvestment #commercialrealestateloan #constructionloan #CRE #distressedrealestate #Florida #multifamily #residentialrealestate #retail #retailfinancing #selfstorage

https://lnkd.in/dxjTtKSm One of the biggest challenges for new development and refinancing is the lending market. Interest rates have risen while revenues and profits have not grown at the same level as discussed in this article.