FEBRUARY Insights Newsletter
In this edition, we cover the latest economic trends and how the Trump effect is influencing market outlooks. You’ll find valuable investor insights, current rate updates, and a spotlight on the strong recovery in commercial real estate lending.
The Trump Effect on the Economic Outlook
Get the latest insights from John Silvia, former Wells Fargo Chief Economist.
Looking for expert insights on interest rates, inflation, real estate, and the economy? Then register to watch a recording of our latest webinar featuring John Silvia, former Chief Economist of Wells Fargo. In this exclusive conversation, he breaks down what’s really happening in the market and how it impacts investors, homebuyers, and businesses.
Investor Insights
CRE Lending Activity sees Strong Recovery
CBRE anticipates CRE momentum extending into 2025.
Fourth-quarter lending momentum is expected to continue this year due to strong fundamentals across most sectors, significant capital and maturing debt, according to the latest research from CBRE.
CBRE’s index measuring lending activity and sentiment rose 21 percent from the third quarter of 2024 and 37 percent year-over-year. For the fourth quarter, the index measured 259, exceeding the five-year pre-pandemic average of 229.
There was a 184-basis-point spread on closed commercial mortgage loans in the fourth quarter 2024, marking a 49-basis-point decline year-over-year and a 1-basis-point increase from the third quarter of 2024.
The percentage of CBRE’s non-agency loan closings for banks in the fourth quarter rose to 43 percent compared to just 18 percent in the third quarter and a 40 percent share a year earlier. Loan payoffs, efforts to clean up balance sheets and a more favorable regulatory outlook boosted banks.
Loan of the Month
Tony Prestera successfully closed $5 million in permanent financing for this multifamily investor in Garden Grove, CA. Secured with bank financing, the loan featured a competitive fixed rate and loan to value to ensure a smooth transaction and great win for the client.
