properties chilling the capital markets?
“I’ve heard from a number of lenders as well as institutional lending groups who have said that until things calm down, they are pencils down for a few months,” says Nick Matt, senior managing director and co-head Pittsburgh office of JLL Capital Markets, Americas. “It depends what property type, but we have seen enough evidence that cap rates have started to slide up,” observes Paul Griffith, senior managing director for Newmark Valuation and Advisory. “Deals have been re-traded. Even on multi-family there has been an uptick on cap rate. It’s subtle, perhaps 25 basis points, but it is across the board.” Dan Puntil, senior vice president and office manager for Grandbridge Real Estate Capital’s Pittsburgh office, notes that the number of deals consummated daily by his peers across the country has fallen by more than 50 percent over the past year, with most of the decline visible since June. Puntil says that while none of the lenders have cut their allocations
Delinquency rates on commercial and single-family loans edged slightly higher in late 2020 but have fallen back to cyclically low levels again. Source: Federal Reserve Bank.
for commercial real estate, their caution means that those allocations are unlikely to be met in 2022. He quotes from a
market update from a global life insurance company that was on pace to do $1 billion in 2022 until the rates began climbing.
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Westmoreland County Update
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