Amid pandemic, Fed support Maintains liquidity in real estate capital markets

Fed support maintains liquidity in real estate

Like other industries, the COVID-19 pandemic has brought economic turbulence to the real estate industry. Capital markets are no exception to this disruption throughout the past few months, and the CMBS market has become the most impacted as almost all lending froze due to the pandemic.

Loans continue to be underwritten but with higher rates or lower leverage to put themselves ahead of the economic rebound. Most economical stress has placed itself over debt markets, with the potential of opportunities ready to present themselves soon.

The prominent challenge investors faced at the forefront of the pandemic is whether or not to defer interest payments. Really, there is no need to sell unless the loan’s deadline is approaching. The possibility of acquiring debt at a discounted rate will most likely present itself towards the end of 2020 and into 2021.