The commercial real estate sector in the US is once again looking up after a rough ride brought about by the 2008-2009 economic recession. According to Forbes, the trends that will drive the commercial real estate sector in 2017 include rise in non-bank lending, rise in interest rate, foreign investment and financial legislation. Statistics indicate that non-banking lenders are quickly filling the void created by traditional lenders after the pre-recession boom. Many traditional lenders have been forced to step back because of Dodd-Frank Act, which President Donald Trump has vowed to repel. The December 2016 announcement by the Federal Reserve that it was raising the interest rates by a quarter of a percentage point has been widely interpreted by various players in the real estate sector.
Some say higher interest rates will put a huge strain on property deals, thereby making it less affordable to invest in the sector. On foreign investment, there are indications that China is cutting back on its overseas investments following a directive from the country’s authorities. Industry analysts are still not sure about the real impact of scaling back, even though many remain apprehensive. Reports indicate that China’s investment overseas rose by over 50% in the first 9 months of 2016. Commercial real estate companies around the world play an important role of advising clients on various issues from negotiating a lease agreement to attracting and retaining clients. The other services offered by these companies include appraising the property value, negotiating leases, navigating financial options and overseeing broker sales and purchases.
A new report released by the Commercial Observer lists 50 most important individuals and companies in the US commercial real estate finance sector. Topping the list is the Chief Lending Officer at Bank of China, Raymond Qiao; The Group Head of Well Fargo Multifamily Capital, Alan Wiener and Matt Borstein and Ed Adler, the respective Head of Global Commercial Real Estate and Head of US Origination at Deutsche Bank. The other names include that of Michael Nash, Steven Mnuchin, Andrew Farkas and Ralph Herzka. Raymond Qiao heads one of the biggest banks from China shaping the real estate sector in the US. Under his watch, the Bank of China along with 5 other lenders took down $1.5 billion in construction loans for SL-Green Realty Corporation. The other real estate entities that have received loans from Bank of China include Loeb Partners, George Comfort & Sons and Jamestown.