In commercial property, the only constant is change. Notes come due, loan interest rates float, property financial performance is uncertain, spreads narrow and widen, baseline assumptions go by the wayside. Sometimes, it’s just time to go get some new capital and refinance.
In spite of the banking industry’s central role in causing the 2008 meltdown, and its enduring role in prolonging the resulting credit crunch for so much of commercial real estate, new indicators show a market growing once again. It’s important to understand what the cause and effect relationship is here. It’s our role — as brokers, agents, investors and reps — to work to create the economic activity and financing demand that brings our bashful pinstriped friends out of their shells. It falls to us to reintroduce them to their role: capital allocation. And we’ve been doing better.