Data compiled by Bloomberg revealed that commercial real estate bond sales declined 85% YoY.
Bond sales this year stand at $4.27B, down from $29.38B at the same time last year.
- Investors blame the Federal Reserve's decision to increase interest rates, which pushed costs for buyers higher, leading to a fall in the sale of properties.
- Chris Sullivan, Chief Investment Officer at United Nations Federal Credit Union, said default risk has increased and believes a cautious and diligent approach is appropriate.
- In 2022, commercial real estate loans that get repackaged into commercial mortgage bonds dropped 10%, from $891M to $804M.
- Mortgage Bankers Association predicted another 15% decline in commercial real estate loans this year.
