How brokers can position for commercial real estate’s new era of recapitalization
“If you were building a capital structure for a commercial real estate asset in 2019 or 2021, your calculation was interest rates are nothing, basically,” he said. “And then it went up 500 basis points. So that makes your math really hard over that period of time.”
That repricing process, Fisher said, determines when deals happen and when they fall through.
“Capital structures really need to heal, recalibrate for the new reality that we’re in,” he said. “As values start to recalibrate, reset to this new normal, then you can start finding transaction activity.”
A long runway of opportunity
As a new phase starts in commercial real estate financing, lenders, brokers and clients have an opportunity to recalibrate strategies for the future.
“We think it’s a very long window of opportunity because real estate life cycles are pretty long,” he said. “There’s a natural rollover of loan maturities and capital structures that run their courses and have their life cycles, and that’s going to play out over the course of years.”
