ABR Commercial Mortgage

Big news for the Portland metro area! Governor Tina Kotek is considering adding 600 acres to the Urban Growth Boundary to make room for data centers and support future growth. 🏗️💻 The preliminary 2024 Urban Growth Report (finalized in December) reveals critical insights: ➡️ Population Trends: Growth is slowing in, with migration driving most of it. ➡️ Housing Crisis: The region needs 27,000 homes to catch up on past demand and 150,000 more by 2045! 🏘️ ➡️ Industrial Land: There’s a surplus, but Sherwood West is key for industries like semiconductors under the CHIPS Act. ➡️ Economic Growth: Sherwood West could help close the gap in commercial space while creating jobs and bolstering the economy. This potential expansion of the UGB aims to balance housing needs, job creation, and economic innovation, with sustainability and equity at the forefront. Stay tuned for updates in December! 🌿✨ What are your thoughts on balancing growth with livability in our region? #PortlandGrowth #UrbanDevelopment #DataCenters #HousingCrisis #FuturePlanning

Big news for the Portland metro area! Governor Tina Kotek is considering adding 600 acres to the Urban Growth Boundary to make room for data centers and support future growth. 🏗️💻 The preliminary 2024 Urban Growth Report (finalized in December) reveals critical insights: ➡️ Population Trends: Growth is slowing in, with migration driving most of it. ➡️ Housing Crisis: The region needs 27,000 homes to catch up on past demand and 150,000 more by 2045! 🏘️ ➡️ Industrial Land: There’s a surplus, but Sherwood West is key for industries like semiconductors under the CHIPS Act. ➡️ Economic Growth: Sherwood West could help close the gap in commercial space while creating jobs and bolstering the economy. This potential expansion of the UGB aims to balance housing needs, job creation, and economic innovation, with sustainability and equity at the forefront. Stay tuned for updates in December! 🌿✨ What are your thoughts on balancing growth with livability in our region? #PortlandGrowth #UrbanDevelopment #DataCenters #HousingCrisis #FuturePlanning

I thought I would share a short update on the commercial real estate lending market. Rates continue to change due to an increase in five-year and Ten-year Treasury rates. The good news is there are still deals available. Low LTV Loans above 6 million with five-year fixed terms are providing the most competitive options. Rates for these loans are currently between 5.06% to 5.46%. Whether it’s treasury rates or stocks, timing is a tricky thing to have success At. So, what has been happening? Over the last 45 days, U.S. Treasury rates have shown a clear upward trend, particularly in longer-term yields. On September 30, 2024, the yield on the 10-year treasury note was approximately 3.81%. This figure increased to 4.03% by October 15, reflecting a significant rise in investor demand for treasuries and concern about economic growth and inflation pressures. The yield peaked at 4.18% on October 21, marking the highest level since late July. Similarly, the 5-year Treasury rate increased during this period, starting at around 3.58% on September 30 and rising to approximately 3.91% by October 10. Best Gary

I thought I would share a short update on the commercial real estate lending market. Rates continue to change due to an increase in five-year and Ten-year Treasury rates. The good news is there are still deals available. Low LTV Loans above 6 million with five-year fixed terms are providing the most competitive options. Rates for these loans are currently between 5.06% to 5.46%. Whether it’s treasury rates or stocks, timing is a tricky thing to have success At. So, what has been happening? Over the last 45 days, U.S. Treasury rates have shown a clear upward trend, particularly in longer-term yields. On September 30, 2024, the yield on the 10-year treasury note was approximately 3.81%. This figure increased to 4.03% by October 15, reflecting a significant rise in investor demand for treasuries and concern about economic growth and inflation pressures. The yield peaked at 4.18% on October 21, marking the highest level since late July. Similarly, the 5-year Treasury rate increased during this period, starting at around 3.58% on September 30 and rising to approximately 3.91% by October 10. Best Gary

The last couple of weeks have been good for commercial real estate interest rates, even if there has been some turbulence. With the .5% interest rate reduction by the FED, the treasury index did not perform as expected. Longer-term treasury rates went up. The good news is some lenders are now trying to price debt with lower spreads to keep active. I am quoting great rates. I recently quoted multifamily under 6 million at 5.27% for a 5-year loan and 5.34% for a 10-year loan. Debt above 6 million could receive rates as low as 5%. Owner-occupied and commercial investment real estate rates are closer to 5.5%. Owner-user borrowers also benefit from low-down payments, typically between 10% and 25%.#Financing Many clients have asked me if they should wait for rates to go down more. This is a tricky question to answer because timing-based decision-making accuracy is difficult to predict in such a turbulent market. When the Fed recently reduced rates by .5%, the 10-year treasury rate went up. If a commercial real estate owner chose to wait until after the federal funds rate dropped, they dealt with higher rates. So why is this happening? While Fed cuts typically affect short-term rates, the impact on longer-term rates can be different. For example, just before the rate cut on September 17, 2024, the 10-year Treasury rate was 3.6474%. The day after the cut, on September 19, 2024, it increased to 3.7018%, and as of October 1st, it stands higher than before the cut at 3.718%. If you would like to track daily changes to the treasury rates, I have a ticker on my website, Abrcm.com. Feel free to use it as a resource. Why did this increase happen? The most prominent reason seems to be that the original reduction in the 10-year treasury took place in anticipation of a rate cut. After the cut, investors' perception of the health of the economy and the potential for a rise in inflation pushed Long-term rates up. Investors purchasing treasuries wanted to be compensated for a potentially increased risk of inflation returning. Rates will take time to normalize. A former Fed official, Bill English, notes that these reactions are not uncommon, and the full impact of rate cuts on long-term borrowing costs may take time to materialize. On a positive note short-term rate reductions are having a positive effect on consumer debt, Commercial real estate and corporate debt based on floating rates. If you need financing for investment or owner user real estate call me for more proceeds, a lower rate, and the best commercial and multifamily real estate debt available. #Finance #Commercialrealestate #ABRCM

The last couple of weeks have been good for commercial real estate interest rates, even if there has been some turbulence. With the .5% interest rate reduction by the FED, the treasury index did not perform as expected. Longer-term treasury rates went up. The good news is some lenders are now trying to price debt with lower spreads to keep active. I am quoting great rates. I recently quoted multifamily under 6 million at 5.27% for a 5-year loan and 5.34% for a 10-year loan. Debt above 6 million could receive rates as low as 5%. Owner-occupied and commercial investment real estate rates are closer to 5.5%. Owner-user borrowers also benefit from low-down payments, typically between 10% and 25%.#Financing Many clients have asked me if they should wait for rates to go down more. This is a tricky question to answer because timing-based decision-making accuracy is difficult to predict in such a turbulent market. When the Fed recently reduced rates by .5%, the 10-year treasury rate went up. If a commercial real estate owner chose to wait until after the federal funds rate dropped, they dealt with higher rates. So why is this happening? While Fed cuts typically affect short-term rates, the impact on longer-term rates can be different. For example, just before the rate cut on September 17, 2024, the 10-year Treasury rate was 3.6474%. The day after the cut, on September 19, 2024, it increased to 3.7018%, and as of October 1st, it stands higher than before the cut at 3.718%. If you would like to track daily changes to the treasury rates, I have a ticker on my website, Abrcm.com. Feel free to use it as a resource. Why did this increase happen? The most prominent reason seems to be that the original reduction in the 10-year treasury took place in anticipation of a rate cut. After the cut, investors' perception of the health of the economy and the potential for a rise in inflation pushed Long-term rates up. Investors purchasing treasuries wanted to be compensated for a potentially increased risk of inflation returning. Rates will take time to normalize. A former Fed official, Bill English, notes that these reactions are not uncommon, and the full impact of rate cuts on long-term borrowing costs may take time to materialize. On a positive note short-term rate reductions are having a positive effect on consumer debt, Commercial real estate and corporate debt based on floating rates. If you need financing for investment or owner user real estate call me for more proceeds, a lower rate, and the best commercial and multifamily real estate debt available. #Finance #Commercialrealestate #ABRCM

The last couple of weeks have been good for commercial real estate interest rates, even if there has been some turbulence. With the .5% interest rate reduction by the FED, the treasury index did not perform as expected. Longer-term treasury rates went up. The good news is some lenders are now trying to price debt with lower spreads to keep active. I am quoting great rates. I recently quoted multifamily under 6 million at 5.27% for a 5-year loan and 5.34% for a 10-year loan. Debt above 6 million could receive rates as low as 5%. Owner-occupied and commercial investment real estate rates are closer to 5.5%. Owner-user borrowers also benefit from low-down payments, typically between 10% and 25%.#Financing Many clients have asked me if they should wait for rates to go down more. This is a tricky question to answer because timing-based decision-making accuracy is difficult to predict in such a turbulent market. When the Fed recently reduced rates by .5%, the 10-year treasury rate went up. If a commercial real estate owner chose to wait until after the federal funds rate dropped, they dealt with higher rates. So why is this happening? While Fed cuts typically affect short-term rates, the impact on longer-term rates can be different. For example, just before the rate cut on September 17, 2024, the 10-year Treasury rate was 3.6474%. The day after the cut, on September 19, 2024, it increased to 3.7018%, and as of October 1st, it stands higher than before the cut at 3.718%. If you would like to track daily changes to the treasury rates, I have a ticker on my website, Abrcm.com. Feel free to use it as a resource. Why did this increase happen? The most prominent reason seems to be that the original reduction in the 10-year treasury took place in anticipation of a rate cut. After the cut, investors' perception of the health of the economy and the potential for a rise in inflation pushed Long-term rates up. Investors purchasing treasuries wanted to be compensated for a potentially increased risk of inflation returning. Rates will take time to normalize. A former Fed official, Bill English, notes that these reactions are not uncommon, and the full impact of rate cuts on long-term borrowing costs may take time to materialize. On a positive note short-term rate reductions are having a positive effect on consumer debt, Commercial real estate and corporate debt based on floating rates. If you need financing for investment or owner user real estate call me for more proceeds, a lower rate, and the best commercial and multifamily real estate debt available. #Finance #Commercialrealestate #ABRCM

💼 #LaborMarketUpdate: The job market is cooling, with unemployment rising slightly. What does a move towards labor market "equilibrium" mean for your business and workforce strategies? Join the conversation and share your thoughts! #EconomicTrends

📊 #RetailInsight: With some major retail chains downsizing and earnings reports showing caution, it's clear the market is adjusting. For investors, this might be a time to reevaluate your retail real estate strategy. Let's discuss the best moves during these fluctuating times! #CommercialRealEstate

💡 #InterestRateWatch: With a 93% chance rates hold steady this month but a promising outlook for a cut by November, it’s crucial to strategize now. For commercial real estate, securing competitive rates now could be key. Are you preparing for potential rate changes? #FinanceTips