Where are Interest Rate Spreads Headed?

Integra Realty Resources (IRR) released the results of its Q1 2017 interest rate survey. The survey of 164 CRE lenders and underwriters provides an accurate gauge of current market conditions by looking at what’s causing interest rate spreads across the U.S. CRE sector.

The survey assesses lending practices based on CRE property type, loan size, geographic location, and how characteristics of the lender affected the financing of CRE assets nationally.

Key IRR interest rate survey findings:

Office

Among multi-tenant deals with a LTV greater than 60%, IRR witnessed contrary interest rate spread changes for CBD and suburban assets

Multifamily

Relatively modest interest rate spread compression over the past six months for both primary and secondary locations

Retail

The Power Center is the only asset class to face compressed interest rate spreads over the past six months on deals with an LTV of 75% or lower

Industrial

Interest rate spreads across all industrial asset classes compressed from highs in Q3 2016

Hospitality

62% of lenders are anticipating a continued increase in interest rate spreads for full service properties

For comments, questions or concerns, please contact Dennis Kaiser

Connect

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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Where are Interest Rate Spreads Headed?

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Where are Interest Rate Spreads Headed?

Inside The Story

About Dennis Kaiser