- Fed Reports Tighter Standards and Weaker Demand for CRE Loans “The January 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices from the Federal Reserve has the type of headline results for commercial real estate lending that you might expect: tighter standards and weaker demands across all CRE loan categories. Those in the industry have reported slowing demand, higher financing costs, tightening standards, and lower leverage for months now. This is a look from the other side. ‘Over the fourth quarter, major net shares of banks reported tightening standards for all types of CRE loans,’ the Fed wrote.” (GlobeSt.com)
- Confidence in Commercial Real Estate Continues to Drop “Now might be the time to check in on your friends in commercial real estate. Real estate professionals’ confidence in the industry dropped in New York City and across the U.S. in the fourth quarter of 2022 as the market continues to deal with a slow return to the office, high interest rates, and layoffs in the finance and tech sectors, according to reports from the Real Estate Board of New York (REBNY) and the Royal Institution of Chartered Surveyors (RICS).” (Commercial Observer)
- Biden’s ‘Buy American’ Proposal Could Mean ‘Pay More American’ for Construction Materials “As the Congressional Research Service later explained price preferences, ‘if a domestic offer is not the low offer, then the price of the lowest offer is increased by 20% or 30% depending on whether a large business or a small business, respectively, submitted the lowest domestic offer.’ In other words, if the domestic supply of a product is within that additional amount, the government can still buy it instead of the cheaper imported product. For construction materials, among others, there would be an additional price preference added, making higher-priced goods more competitive.” (GlobeSt.com)
- The 5 Markets with the Most Potential Multifamily Distress “Multifamily properties have received a lot of investment over the last few years. However, rising interest rates and slowing demand could make it difficult for many owners to refinance or pay the debt service on their apartment communities. Although apartment owners across the country could be challenged, data and analytics firm Trepp pinpointed five metros that could be most susceptible to problems in a recent report. St. Louis came in as the market with the most potential for apartment distress, followed by San Francisco, Seattle, Chicago and Minneapolis.” (Multifamily Dive)
- Archeologists at Related’s Baccarat Project Site Uncover Artifacts Dating Back Thousands of Years “Archaeologists discovered thousands of tools, artifacts, and human and animal remains dating back 7,000 years at the Related Group’s Miami River construction site, where the development firm plans a three-tower project. The 16-month excavation and preservation of the items could be the most archaeologically significant findings near the mouth of the river in the past 25 years, the Miami Herald reported. Other sites include the Miami Circle National Historic Landmark, which experts have predicted is about 2,000 years old.” (The Real Deal)
- LA Landlords Must Pay to Relocate Tenants Facing Hefty Rent Hikes “Landlords in Los Angeles must now pay to relocate tenants who move after a large rent increase. The Los Angeles City Council has adopted an ordinance requiring landlords to pay relocation assistance to tenants who move out after getting rent increases of 10 percent or more, City News Service reported in the Los Angeles Daily News. Under the ordinance, if a landlord hikes rent by more than 10 percent, or the Consumer Price Index plus 5 percent, he or she must pay the tenant three times the fair market rent for relocation assistance, plus $1,411 in moving costs.” (The Real Deal)
- Notorious Las Vegas Strip Property Nears Sale; New Casino Likely “Land on the Las Vegas Strip has become especially precious because few plots big enough to build a massive new resort casino are available. That lack of space has forced some new development into the north section of the Strip, where formerly barren sites now host the gigantic Resorts World Las Vegas and the upcoming Fontainebleau. Building on the South and Central Strip is much harder because very little land is available.” (The Street)
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