Big CRE Players Take Aim At the Coming Distress

One of the speculations GlobeSt.com has heard since the Federal Reserve started the interest rate climb to head off inflation has been when the distress would happen.

Too many properties had been purchased under low interest rates and high leverage. When the inevitable time case to refinance, the current rates would make that process too costly, especially as lenders were tightening underwriting. Either owners would have to put in significant amounts of extra equity, they’d have to sell under distressed conditions, or they’d be required to turn the property in to the lender.