10 Year Treasury Keeps Going UP!

[Ronald Rohde]

10 year (the common benchmark for CRE loans) just keeps climbing. Despite rate cuts, we aren't seeing the lending market agree with their expectations on inflation. How bad is this going to continue to hold back the CRE market?

Are you guys buying at 10-11 caps? Or just not buying at all?

[Steven McPherson]

The 10-year is pessimistic about the next few years. There is no way sellers are selling at caps that high unless there is a special circumstance, so buyers just aren't buying. When I see deals that do pencil for an investor, the LTV is 60% or less (I deal with mostly retail and industrial). The CRE market is tough right now.