What The Historic Collapses Of SVB, Signature Bank Mean For Commercial Real Estate Investors
March 13, 2023 | Dees Stribling | Bisnow
Until late last week, the biggest concern for most commercial real estate investors was the prospect of a higher-than-expected interest rate hike. That changed in the blink of an eye when two of the 30 largest U.S. banks collapsed in a 72-hour window, triggering extraordinary steps by the federal government and the Federal Reserve to stabilize the financial system.
Now, there is an epic new cloud of uncertainty for real estate finance as lenders try to contain the fallout of the second- and third-largest bank failures in American history.
“There were already two things going against the real estate community — higher interest rates and lower valuations,” said Anchin Block & Anchin partner Robert Gilman, co-leader of the accounting firm’s real estate group. “Now there’s this, which is going to tighten up underwriting, including for credit facilities.”
