Interest Rate Cuts Might Not Be Enough To Save Commercial Real Estate - Here's Why

Interest Rate Cuts Might Not Be Enough To Save Commercial Real Estate - Here's Why // There's been a lot of talk about potential interest rate cuts over the last 6 months, and how these need to happen as soon as possible in order to save commercial real estate borrowers.

But even though interest rate cuts could be helpful in some scenarios, these might not have the kinds of widespread positive impacts that these news articles are talking about.

And in this video, I want to highlight a few reasons why decreases in interest rates might not provide the kind of relief that investors are hoping for, and some more concrete numbers behind why this might be the case.

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🕒 Timestamps 🕒
0:00 Introduction
0:37 Reason One
2:16 Reason Two
3:52 An Example
6:50 Reason Three

#commercialrealestate #commercialrealestateinvesting

*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.

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Research and articles referenced in this video:
https://www.wsj.com/real-estate/commercial/propertys-waiting-game-is-getting-harder-4e25684e
https://www.fastcompany.com/91118602/commercial-real-estate-foreclosures-spike-117-percent-distress-mounts
https://www.trepp.com/trepptalk/loan-modifications-then-now-extend-and-pretend
https://www.youtube.com/watch?v=OvVLwqlsYXg
https://www.guggenheiminvestments.com/perspectives/sector-views/commercial-real-estate-when-maturity-means-default
https://www.cnbc.com/select/when-will-interest-rates-drop/
https://wolfstreet.com/2024/02/12/cre-loans-maturing-in-2024-balloon-by-41-to-929-billion-after-loans-that-matured-in-2023-werent-paid-off-but-extended/
https://www.cbre.com/insights/figures/q1-2024-us-office-figures
https://www.cnbc.com/select/when-will-interest-rates-drop/
https://derivativelogic.com/forward-curves
https://www.cnn.com/2024/01/02/economy/interest-rate-cuts-inflation-fed-2024/index.html
https://finance.yahoo.com/news/inflation-comes-in-hotter-than-expected-in-march-123324666.html?_fsig=eXXCqpmrsgrLdgqMYKE9ow--%7EA
https://www.usatoday.com/story/money/2024/03/18/federal-reserve-fewer-rate-cuts/72978526007/
https://www.reuters.com/markets/us/futures-edge-higher-rate-cut-bets-2024-05-06/
https://fortune.com/2024/04/06/commercial-real-estate-office-building-values-once-in-a-generation-buying-opportunities/
https://thehill.com/business/4526847-wall-street-braces-for-commercial-real-estate-timebomb/


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