Capitalizing on the FED’s Next Move

How the Debt Landscape Presents Opportunities for Investors ​

Debt Liquidity Solid Across Most CRE Sectors And Markets ​

• Fixed CRE mortgage rates facing downward pressure due to lower treasury yields and tighter lender spreads ​

• Loan-to-value and debt service coverage ratios remain stable ​

Lenders Are Engaging In CRE Transactions ​

• Banks and credit unions increasing lending volumes​

• CMBS bond investors showing healthy appetite for lending, especially for hospitality transactions ​

• Life companies actively focused on low-leverage deals with strong sponsors ​

Conditions Are Ripe For Investors To Act ​

• Election may stall Fed’s decision to cut rates in late 2024 ​

• Interest rates have come down and cap rates are still elevated ​

• Investors likely working with a relatively narrow window where cap rates and interest rates align to clear the market ​

*Through September 11​
Sources: Marcus & Millichap Research Services, Federal Reserve​

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