Financial services firms are the backbone of Manhattan office demand. But the growing prospect of widespread layoffs in the finance industry could put the brakes on this vital absorption driver in coming months.
A new report finds that tighter lending standards have hurt U.S. mortgage real estate investment trust (REITs) funding profiles and growth prospects. Mortgage REITs have indeed felt increased ratings pressure in the last several weeks, according to Manhattan-based Fitch Ratings.
Tuesday’s half-percentage point interest rate cut sparked a sizeable rally that drove the Dow Jones Industrial Average up by 335.97 points. And in the embattled credit markets, pricing for the riskiest bonds roundly shot up as bankers exploited the interest rate cut to refinance debt or sell junk bonds.
Increased turmoil in the debt and equity markets wasn’t enough to empty U.S. hotels during the Labor Day weekend. Nor were these trying credit conditions enough to force hotel lenders onto the sidelines.
New research finds that investors’ return expectations softened during the first half of 2007 despite growing evidence that commercial property fundamentals were improving during that period. The disconnect suggests that improving operating fundamentals weren’t enough to quell investor concerns about shifting winds in the real estate capital markets.
The commercial real estate market has strengthened since 2004 as growing demand for space collided with limited new supply. But a new report from Boston-based Property & Portfolio Research (PPR) notes that fundamentals growth as evidenced by vacancy and rental rates lost momentum at midyear. The August 3 report analyzed the 54 largest U.S. commercial real estate markets.