The 10-Year U.S. Treasury has dropped 15 basis points from this time last month but is up 19 basis points from just a few days ago. Uncertainty remains high in both the stock and bond markets due to unknowns surrounding tariffs and government spending from the current administration. One area of commercial real estate feeling the impact is office leasing. The Department of Government Efficiency (DOGE) has terminated 748 leases nationwide, totaling 9.6 million square feet and $660 million in annual rent. With office vacancies already at historic highs, the effects of these lease cancellations will be closely watched in upcoming market reports. Additionally, layoffs have reached their highest levels since 2020 due to federal staff reductions. For now, we remain in a "wait and see" period as these policies take effect. Until more clarity emerges, expect continued volatility in yields.
As yields fluctuate, "current rates" quickly become obsolete. However, spreads remain applicable and fitting to deal characteristics. Though rates are important, having a well articulated and defined debt plan matching your long-term investment plan is vital. The experts at CommCap are here to help you understand goals and navigate the current market providing access to multiple lending sources, early rate-locks, cash out refinancing, and more.
As your exclusive advisors, CommCap utilizes proprietary systems, market expertise, and years of experience to secure aggressive financing options that best fit your property. Exclusive correspondent and servicing relationships with Life Insurance Company, CMBS, and Agency lenders ensure a broad and in-depth representation of current market conditions. Our team of advisors craft a loan structured to enhance revenue and allow you to focus on increasing cash flow.
We do not list, sell, manage, or lease property. We only arrange financing and are the best at what we do.
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