EBA Risk Management April Meeting: The Future of CRE

Adapting to Change: Transaction Volume, Interest Rates, and the Future of CRE

The Environmental Bankers Association (EBA) presents their virtual monthly Risk Management Meeting on Wednesday, April 24 at 9:00 AM PT | 12:00 PM ET.

ERIS’ Dave Colonna, Director, Lender Services, speaks with John H. Wright, Jr., MAI, Senior Managing Director, BBG, about the dynamics of recent trends and what they mean for commercial real estate (CRE).

The decrease in CRE transaction volume, attributed to the escalation of interest rates, has led to broader bid/ask spreads and a reluctance among lenders to foreclose. While the onset of COVID-19 initially propelled transaction volume with low interest rates, the subsequent rise in rates has deterred investment in CRE. This presentation will explore the intricate ways interest rates influence transaction volume and property values, particularly as they amplify debt costs and capitalization rates. We will also discuss the inverse correlation between interest rates and cap rates and examine potential scenarios for the rebound of transaction volume, prevailing lending trends, sources of debt capital, active property categories, and sought-after investment locations.

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About the Speakers:

John H. Wright, Jr., MAI, Senior Managing Director, BBG Real Estate Services
John serves as Senior Managing Director at BBG. He previously served as President of the full-service real estate appraisal and consulting firm of Aaron & Wright Incorporated. John has been involved in real estate appraising and consulting since 1983. His experience includes the preparation of narrative appraisal reports on virtually all types of commercial real estate, reviewing commercial appraisal reports, and consulting. John is based in Houston, TX.

David Colonna, Director of Lender Services, ERIS
Dave joined ERIS in the summer of 2021 and serves as the Director of their Lender Services Group. He has supported the needs of both Environmental Professionals and Lenders for the past 20 years. Dave is based in Connecticut.