Viewpoints Q4, 2024

Interest Rates and the Lending Market for Commercial Real Estate

Challenges within the U.S. commercial real estate market have frequently been linked to issues in the financing markets. In this edition of our quarterly report, we examine the impact of elevated interest rates, shifting lending standards, and the ripple effects of declining property values on borrowers and lenders. Readers will explore how these challenges, along with a historic wave of loan maturities, are reshaping the lending landscape and why strong property performance and lender collaboration remain critical for navigating this shift.

This Report Covers…

  • The effects of rising interest rates on commercial property valuations

  • Borrower challenges with refinancing as loan maturities hit record highs

  • Lender strategies like “extend and pretend” to manage loan risks

  • Chestnut’s outlook on navigating loan maturities and market opportunities

  • And more

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Our previous Viewpoints editions offer insights and data on real estate, investment strategies, and economic trends.