For assets leased by essential service providers, the cap rates haven’t changed, says one market insider. “But if there’s any kind of hair on the deal… it’s not doing well.”
While there was more caution in the market in March, sales continued to close, according to Ten-X Commercial.
While many tenants were able to pay rent in April, continuing shutdowns mean more federal assistance might be necessary to help workers forced to stay at home.
An early trouble spot to surface has been among highly leveraged lenders who rely on short-term repo warehouse lines of credit.
Demand for self-storage properties was higher than usual in March, even as much of the U.S. economy shut down.
Charles Krawitz, vice president and head of commercial lending at Alliant Credit Union, is the guest on this edition of the Common Area podcast.
Some investors raise concerns on rental revenue and occupancy rates, but the sector should be well-positioned over the long term.
There may be upward pressure on yields as Treasury supply starts to swell.
While these are uncertain and volatile times, many commercial real estate businesses should be able to maintain operations and continue to provide valuable contributions to the economy.
The rise of social media and digital marketing within the broader real estate syndication market is all about enabling more voices to be heard.
