market view

The Dallas-based manager’s latest whitepaper highlights the banking pullback and the perception of the US office sector as areas in need of a deeper dive.

The manager is also seeing distressed opportunities amid tightening borrowing markets.

The imminent sale of a Class A Downtown Manhattan office will provide another important metric.

The shift comes as borrowers and lenders think creatively about ways to finance transactions in a volatile market.  

Market specialist Malcolm Davies at WAY Capital believes there is a need for more pragmatism and creativity around office conversion projects.

The firm is looking to grow its debt platform and recently hired Dean Dulchinos as head of debt portfolio management to oversee activity. 

A lower leverage, liquidity-constrained environment makes it a good time to be a lender, market participants say. 

KCP's K-LOC designation identified 70 fewer loans as being either at risk of or in default

The firm also believes CMBS delinquencies could rise to top 4%. 

While borrowers are already feeling the impact of higher interest rates, the low DSCRs will present a particular problem as refinancing looms.