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.