Net Lease

Debt service coverage ratios are looking tricky, according to Trepp.

Right now, though, the office vacancy rate is at 17.8%, the highest since 1993.

It's now at early 2021 levels as relatively high interest rates and ongoing inflation put brakes on the economy.

Retail and industrial have been most volatile, apartments fairly steady, and office the laggard.

Treasury's big demand for large sales will draw investors and money away from borrowers like CRE firms.

Delinquencies are above 4% for the first time since 2018, according to Trepp.

Extremely limited supply, increasing demand and a diverse demand profile give the sector strength.

"Demand remains well to the positive side, but it is braking somewhat, particularly among consumer-related businesses."