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White Paper
Q4 2024 CRE Credit Market Update:
Finding Opportunities in Dislocation
December 2024
Credit
As demand for capital outstrips supply amid a wave of loans coming due, learn why we believe lenders have a strategic opportunity to originate and acquire loans secured by high-quality collateral with better all-in return potential.
Key Takeaways:
- The Fed’s recent and anticipated rate cuts will, we believe, provide relief for commercial real estate (CRE) borrowers and banks, but tight lending standards and capital shortages make refinancing difficult for those with maturing low-interest debt.
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- The outlook across subsectors and properties is mixed. Weaker properties are struggling for financing as stress continues to mount in the legacy collateralized mortgage-backed securities (CMBS) and collateralized loan obligations (CLO) markets, while prime properties with well-capitalized owners have easier access to capital.1
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- Market dislocation is, in our view, providing attractive opportunities for lenders with fresh capital.
Q4 2024 CRE Credit Market Update:
Finding Opportunities in Dislocation
.avif)
- Avrio Q1 2024 Market Commentary
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