It will allow businesses to further emerge from the pandemic, pressure-test how many workers will permanently work remotely, and allow the price of materials and labor to further recede from their post-pandemic highs. By comparison, office occupancy rates in Europe and the Middle East have already returned to 70% or higher. National Bureau of Economic Research (NBER).Īdditional time will provide several benefits as inflation and interest rates moderate. The drop wiped out $453 billion of commercial real-estate value, according to the U.S. Not only are the rates higher, but the real estate values are much lower, especially in cities afflicted with high vacancy rates from ongoing work-from-home policies. ”Ĭonsider that the bulk of commercial real estate loans were financed when base rates were near zero - far below today’s rates closer to 5%. “ The bulk of commercial real estate loans were financed when base rates were near zero. The perfect storm brewing from higher interest rates, lower real estate values and an illiquid market will burden consumers, businesses, stall affordable housing expansion and further imperil the health of our major metropolitan areas. Granting borrowers more time to adjust the economic climate makes more sense than pushing loans that could result in more foreclosures and bankruptcies.įailure to act will hurt more than just those holding these loans. In the summer of 2022, the Board of Governors at the Fed proposed a comparable policy. During the 2008-09 financial crisis and again in the COVID-19 pandemic, similar programs provided financial institutions flexibility to work constructively with borrowers. This strategy has a proven track record of success. More mountain locations added to the Winter Weather Advisory.To avoid inflicting more far-reaching economic uncertainty, the Federal Reserve and the financial services regulatory agencies should grant more time for borrowers - including corporate real estate developers - to restructure commercial real estate loans. Energy from that Atmospheric River and an associated cold front will make it to Colorado by Tuesday and will bring another round of snow and wind to the mountains. Incoming StormĪn Atmospheric River of moisture has been making weather headlines over the last several days as a copious amount of rain and snow has fallen across California and the West coast. These big early-season numbers come from the fact that there is not typically a lot of snow seen in October so the averages are low but this October has delivered more than two feet of snow to many mountain ranges.Ī benefit of early-season snowpacks numbers is it allows the season to start earlier which alludes to the point that the snowpack season will last longer into April and May. Snowpack is 296% of normal currently with the Gunnison headwaters a startling 831-percent of normal. Statewide snowpack sits at 296% of normal as of October 25 Numerous storms throughout October have left the high mountain peaks coated with snow and that has added up nicely in terms of our early season snowpack. While Denver has yet to see its first measurable snow of the season, mountain locations have been getting their fair share of winter-like weather. Digital Replica Edition Home Page Close Menu
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