Is Our Debt Capital Recession Finally Here?

Looking back, late 2020 through early 2022 could be viewed as ‘the best of times.’  Strong economic growth, low interest rates, abundant construction, quick absorption and growing rents typified the real estate industry.  

Then inflation jumped to 40-year highs while the US GDP turned negative.  The Fed belatedly embarked on its aggressive tightening likely to add 300 bps to borrowing costs in a single year while Treasury yields jacked fixed rates.  Seemingly overnight, previously contented lenders and owners began voicing concern about tenant performance, sustainable property revenues and debt coverage metrics.   Caution replaced exuberance.

All this has happened so quickly that a full understanding, much less needed solutions, remain elusive even now.  But solutions will come; the industry seems to get quicker with each cycle at adapting to a new normal that lets business continue.  

All of this makes the timing of REIAC’s 19^th annual Debt program ideal.   Brian Olasov will once again be our moderator, and his all-star panel will talk through the current situation, bracket the potential severity and duration and collectively explore likely steps on the way to a renewed lending environment having suitable quantities and pricing of debt capital at appropriate risk adjusted returns.  

As we have in years past, we are opening up this special program to the entire commercial real estate community, not just REIAC members. This will be a terrific panel discussion so, mark your calendar now!

We look forward to the post-COVID return of REIAC members and guests when we meet – yes, LIVE! - on September 22^nd, at the Intercontinental Hotel in Buckhead.

Join REIAC for an honest assessment as we explore the challenges facing us, with the expertise of:

• Michael Thomas, Executive Vice President and Head of PNC Real Estate
• Jack Gay, Global Head of Commercial Real Estate Debt for Nuveen Real Estate
• Lea Overby, Managing Director and Head of U.S. CMBS Research at Barclays Capital
• Leland F. Bunch, III, Bank of America
• Brian Olasov, Adjunct Professor Real Estate Capital Markets, New York University Schack Institute

We thank our generous sponsors for their ongoing support: Dentons, LightBox EDR and Stewart Title Company.

Best Regards, 

Jerry Monash, CCIM                 Bill Leffler                     Lissette Rivera-Pauley       Jimmy Barkin

REIAC SE President                    Program Chairman        Program Organizer            Program Organizer