Published November 9, 2023
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This white paper examines:
- The connection between rapidly escalating interest rates and the CRE market slowdown, including context from the last period of severe distress.
- Size of total debt in the NYC market with breakdowns by vintage and asset type; the impact of coming maturities.
- Banks shifting towards more conservative underwriting, and the impact to borrowers today and going forward.
- Consequences of the rent stabilization law of 2019.
- Declining office values, and the particularly precarious position of Class B&C Office.
- The continued rise of property taxes, and past-due taxes as a leading indicator of distress.
- A practical example of how an individual property owner is affected by falling values, rising interest and cap rates, and stricter lending standards.
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