National + Finance | March 2, 2023

VIDEO: At NMHC Conference, Industry Leaders Weigh the Cost of Debt

Speaking as a 25-year veteran of commercial real estate finance, Way Capital founder and senior managing partner Malcolm Davies believes “availability of debt and availability of capital has never been greater. It amazes me how many funds have been raised to deploy into commercial real estate in this cycle compared to what it used to be.”

However, Davies told Connect CRE at the recent National Multifamily Housing Council 2023 Annual Meeting, the structure of the capital is the issue. “The cost of that debt is really impeding a lot of transactions to get done,” he said.

In the video below, you’ll hear more insights from Davies on the current cost and availability of debt, and also from Marcus & Millichap CEO Hessam Nadji. Regarding one of the key drivers of the rising cost of debt—short-term interest rates as determined by the Federal Reserve—Nadji told Connect CRE, “I don’t believe the Fed has any reason to pivot” from its present course.

Connect

Inside The Story

Marcus & Millichap's NadjiWay Capital's Davies

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).