Top 10 reasons to lean into CRE: 1. No Recession looming 2. Lower Financing Costs 3. Valuations reset lower and have stabilized CRE recovery will be painfully slow, yet in the early stage of restoring confidence 4. $1T debt maturity wall is daunting, ton of restructuring and foreclosures yet to occur 5. Credit Rating agencies remain behind the curve: 74 CMBS bonds downgraded v. 0 bonds upgraded 6. Credit analysis for each loan in securitization is paramount, allowing for substantial opportunity in the $1T CMBS market 7. Lender’s Market with a shortage of capital as banks CRE lending is more conservative 8. Default rates to remain elevated for CRE v. Direct Lending (corporate) default rates 9. Many forced sellers in need of liquidity 10. CRE dislocation, opportunities greatest I have seen in years 10. CRE dislocation, opportunities greatest I have seen in years |
