Banking fortunes are again connected to those of real estate, but any suffering should not be worse during the global financial crisis, suggests Tony Brown, global head of M&G Real Estate.
With stresses appearing in the financial system, the property sector may become a cause of these as well as suffering the consequences, writes Kiran Raichura, deputy chief property economist at Capital Economics.
Here are five ways the bank crises in the US and Europe will make it more challenging for transaction activity to bounce back.
Lenders at MIPIM were sanguine about Silicon Valley Bank, but the Credit Suisse situation will amplify concerns.
Two of the biggest names in private real estate were engaged in conversations with their lenders about loans that are now due.
Users of loan-on-loan financing may want to provide their lenders additional protections in this period of uncertainty, say Richard Hanson and Julius Maximilian Rogenhofer of law firm Morgan Lewis.
Trimont’s Michael Delaney says lenders should focus on loan events, cashflow and covenants to mitigate current risks.
To fight ‘active inertia,’ managers will need to adapt to changing client requirements,’ writes Chris Urwin, founder at advisory firm Real Global Advantage.
As managers shift to focus on near-term challenges, sustainability and social impact goals are at risk of being deprioritised.
A report published this week by LaSalle Investment Management and the Urban Land Institute drives home that non-uniform measuring of risks is keeping institutional real estate markets ambivalent.