Although, as this article from the FT suggests, commercial real estate has been badly hit by sustained high rates of interest and declining values, perhaps in an election year and with the ever-promised reduction in interest rates looming, it’s not all bad news after all. The major focus through 2023 and beyond has been on refinancing loans which, although not leading to generation of new acquisitions, is at least indicative of relationship banking being key here. Borrowers who can maintain good communication and co-operation with their lenders throughout the term of their loan may find their lenders are more willing to help them through the tougher times.
After all, the last thing any lender wants is to be handed the keys.
If you require any assistance with your existing or new banking facilities, the Forsters banking team is ready and willing to assist with all your financing needs!
She said “there are some difficult conversations going on” but that as long as borrowers are co-operative, taking back control of a building is “the last thing any lender wants”.
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