Lenders’ ability to extend and pretend is being tested as the Fed keeps interest rates higher for longer. That’s cementing direct lenders’ position in the ever-evolving financing arena.
For several quarters now, the commercial real estate sector has been grappling with the repercussions of persistently high interest rates. Higher-for-longer interest rates have effectively paused commercial real estate transaction activity, with sales volume at roughly half of peak levels and asset prices down as much as 40%, depending on the property type and market.
