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Peter Fisch Notes Continuing Impact of Interest Rate Hikes on Commercial Real Estate Market in Practical Law The Journal
March 6, 2023
Real estate partner Peter Fisch was interviewed about recent developments impacting the U.S. commercial real estate market in “Commercial Real Estate: Trends and Predictions” in the March 2023 issue of Practical Law The Journal.
Peter notes that market uncertainty created by interest rate hikes and recession fears “has really locked up the debt markets,” a major driver of activity in the commercial real estate market. “Lenders are definitely tightening up on terms and showing a lot less flexibility,” he notes.
The market has not yet returned to a pre-pandemic equilibrium between buyers’ and sellers’ pricing expectations, he observes, with some clients devising new strategies for protecting themselves against a potential market downturn. “I have noticed some strategies that would have been viewed as very strange just one year ago, such as buyers pushing for financing contingencies or refusing to go hard on a deal until they can line up their financing,” Peter says, adding that “any willing and able buyer in this market has a tremendous advantage, and is negotiating provisions in agreements that have not been available in a long time.”
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