Cost Seg Capital

According to Yardi Matrix, national average asking rents rose by $5 to $1,736 in April, a minimal 0.9% YoY increase. Despite an onslaught of new supply, demand held firm, fueled by a strong labor market and unaffordable for-sale housing.

CMBS delinquencies hit 7.03% in April—the highest since early 2021. And it’s no longer just office. Multifamily and lodging are now flashing red, pointing to deeper cracks across CRE.

Total assets on the Fed’s balance sheet declined by $43 Billion in December, to $6.85 trillion, the lowest since May 2020,

Since the end of April 2022, the Fed has shed $2.11 trillion.

Over the past 24 months, the delinquency rate for office CMBS has exploded by 9.4 percentage points.

The office sector is in a depression, and office debt just keeps getting worse: an additional $2 billion in CMBS office debt became newly delinquent in December.

The U.S. banking system remains broadly stable, but a troubling spike in office loan defaults signals deepening stress in commercial real estate. At large banks, the delinquency rate for office loans has surged to 11%

A Federal Reserve rate cut in September and another in December looks like a nearly sure thing after last week's consumer price index and producer price index data. The S&P 500 climbed in Friday afternoon trading after PPI inflation overshot estimates but looked benign below the surface.

Total commercial real estate (CRE) mortgage borrowing and lending is estimated to have totaled $429 billion in 2023, a 47 percent decrease from the $816 billion in 2022, and a 52 percent decrease from the record $891 billion in 2021.

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