2 — August 2026 — M id A tlantic Real Estate Journal
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M id A tlantic Real Estate Journal
M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnist ..............................Tony H. Benson II, CENTURY 21 ® Gold; Andrew Lofredo, CRE Vertical Advi- sors; James Yoakum, Kleinbard LLC; Andrew Koller, WCRE/ CORFAC International Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 38, Issue 8 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage
Andrew Lofredo
Loan Maturities Are Not a Strategy
C ommercial real estate financing is entering an interesting phase. Banks are beginning to return to the market after several years of tightening credit. That shift is most visible among larger depositories and institutional lenders, with com - mercial mortgage originations increasing significantly during the first quarter of 2026, and that momentum has continued into the second quarter as lend - ers become more active and borrowers address upcoming loan maturities. At the same time, the 10- year US Treasury has climbed roughly 50 basis points (ap - proximately 12%) since the beginning of the year, and some market participants believe it could approach 5% if current trends continue. Those developments aren’t contradictory, but it does mean that credit is becoming more available, while capital is be - coming more expensive, which makes decisions and strategies a little more difficult. Regardless,
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this is the market owners are operating in today. Even though sometimes the only impetus for a refinance is a pending maturity, the purpose should be more than just re - placing one loan with another. Every financing decision influ - ences cash flow, debt service, reserves, leasing flexibility, future capital investments and, ultimately, the role that prop - erty plays within the portfolio. Before speaking with lenders, it’s worth stepping back and re - visiting the property’s business plan and it’s role in the overall portfolio if you are managing more than one asset. Has the investment thesis changed? What leasing activity, ten - ant improvements or capital projects are expected over the
next several years? Will additional leverage strengthen the long-term eco - nomics of the asset, or simply de - fer a larger ownership decision? Is this still the best place to invest additional capital, or would those dollars create greater value elsewhere in the portfolio? What does a sale vs a refinance look like? Financing is one component of executing an ownership strategy so the asset manager should be asking all of these questions and more. The same market forces that influence borrowing costs also influence buyer purchasing power, investment returns and, over time, property values. A financing decision made today can shape an owner’s flexibility continued on page 12
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