On the question of how wide the debt markets have opened up in 2026, Raj Aidasani, managing director, research with the CRE Finance Council, put the markets into perspective. “Capital is definitely available, but it is selective,” compared to the low-rate environment of 2021, when lenders were more active and more inclined to take risks.
Today, Aidasani told Connect CRE at the CREFC Annual Conference, “they’re more focused on underwriting assumptions, property fundamentals, sponsor strength. They want to make sure those cash flows are durable.”
Asked what the higher-for-longer interest rate environment as determined by the Federal Reserve means for commercial real estate borrowers and lenders, Aidasani pointed out that while the industry is affected by rates, “the Fed’s actions impact the Fed funds rate, which is an overnight rate. We care about the longer end of the curve.”
In the video below, Aidasani provides additional insights on these questions, as well as on the office sector, which currently generates headlines about the sector’s recovery as well as ongoing distress.
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