A funny thing happened on the way to the loan department: Someone asked for a property valuation, and nobody could agree on what it should be.

Many lenders are wary about financing CRE. Yes, there are the concerns about property types like office and multifamily. Everyone worries about where inflation and, therefore, interest rates might go. And property values keep dropping.

But even as valuations fall, few have a tight handle on what a building is actually worth. Greatly slowed transaction rates at times when a lot of property owners are trying to bail out of a bad refi position mean getting comparables is tough. How much financing can a building support? Can the business plan work in the long run?

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