03/08/2023
For the last fifteen years, multifamily and commercial real estate investors surfed a rising wave of increasing property valuations buoyed by abundant and cheap capital. But in 2022 the ebb currents gained the upper hand and liquidity washed away. The culprit? The return to higher interest rates powered by the Fed’s wrestling match with inflation. There was no moment when the music stopped for CRE investing, as there was in 2007 when spreads on AAA CMBS bonds suddenly blew out by 1500 basis points....
For the last fifteen years, multifamily and commercial real estate investors surfed a rising wave of increasing property valuations buoyed by abundant and cheap capital. But in 2022 the ebb currents