As we gather feedback from clients and contacts for our Real Estate Sentiment Index 2023, interest rates and the availability of debt funding for commercial property transaction and land acquisitions is a recurring theme.
Whilst the challenges of interest rate rises, reduced LTVs, and general inflation have resulted in a marked slowdown in deals in the second half of 2022 there seem to be signs of stabilisation in the market. Will we see a return to spring 2022 levels of transactions in spring 2023?
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“Lenders are likely to remain selective in what they finance, and investors may need to inject additional equity or subordinated debt to refinance office assets, given movements in values and loan terms,” CBRE said.