Jay Maddox

Cap Rates Versus Interest Rates: When Will the Other Shoe Drop?

Market cap rates tend to increase during periods of rising interest rates, but Avison Young Principal Jay Maddox explains why this may not be the case for commercial real estate anytime soon.

New Rules May Spell Big Changes for Banks, Borrowers

The implications of U.S. bank regulators’ newly proposed rules for risk classification of acquisition, development and construction (ADC) loans, according to Avison Young Principal Jay Maddox.

The Last-Dollar Mindset

Private equity funds have a tremendous amount of liquidity, but they are becoming increasingly selective in the types of projects they finance as the cycle appears to be peaking, notes Avison Young Principal Jay Maddox.

Economic Costs of Twin Disasters

The two storms will rank among the costliest in U.S. history, and that goes for the real estate industry, too, notes Avison Young Principal Jay Maddox.

High Volatility CRE, Revisited

Avison Young Principal Jay Maddox discusses how the implementation of HVCRE rules has negatively impacted borrowers and created uncertainty for lenders, as well as the current efforts to soften the regulation.

The Flattening Yield Curve

Industry participants can expect further softness in land values and increased difficulty in obtaining construction loans, as short-term interest rate increases are expected to continue, argues Avison Young Principal Jay Maddox.

All About Equity Waterfalls, Part 2

Profit distribution waterfalls and joint venture structures are common investments in commercial real estate, but they are also complex and require trade-offs for both investors and developer/sponsors, notes Avison Young Principal Jay Maddox. Part 2 of 2.

All About Equity Waterfalls, Part 1

Many developers and sponsors rely on third-party investors to fund the majority of their project’s equity, but structuring a mutually acceptable joint venture can be quite a hurdle to overcome, notes Avison Young Principal Jay Maddox. Part 1 of 2.

The Case for Lower Interest Rates

Reduced growth expectations and a potential stock market correction could mean interest rates might not rise as much as previously thought, notes Avison Young Principal Jay Maddox. Lower rates combined with strong demand fundamentals and capital availability could bode well for commercial real estate values.

The Trouble with EB-5 and What’s Ahead

By Jay Maddox, Principal, Avison Young: While EB-5 investments have grown exponentially in the last decade, an ever-increasing number of projects are facing difficulties.