The Jobs Act of 2013, which was enacted, in part, to give companies greater access to capital, opened up new sources of funding for commercial real estate investment. However, the new rules that grew out of the law also created some significant hurdles to accessing that capital, says attorney Dominic Lloyd, a partner in the Denver office of the law firm BakerHostetler.
Cassidy Turley’s Chief Economist Kevin J. Thorpe explains why neither rising interest rates nor the tapering of the government’s quantitative easing are significant threats to the economy or commercial real estate.
There are many reasons to feel positive about the state of commercial real estate finance. CRE loan originations for the second quarter of 2012 were up 25 percent over the same period in 2011, according to the Mortgage Bankers Association. And a growing number of lenders are looking beyond gateway cities and Class A assets when making loans, says Constantine Korologos, managing...
1. The Threat: External forces that could tip the economy into recession. A critical geopolitical event elsewhere, deteriorating debt conditions in Europe, an increasing debt-to-GDP ratio in the United States, or further downgrading of our nation’s credit rating could all push the U.S. and global economy into a recession.