According to a recent report from Kroll Bond Rating Agency (KBRA), commercial real estate loan originations are expected to increase by 23.6% in 2024, aligning with the Mortgage Bankers Association’s projection of a 25% year-over-year growth. However, KBRA also noted conflicting views for the same period – while investors interviewed by Urban Land Institute and PwC anticipate an uptick in transaction volume, CBRE forecasts a decline of 5% in investment volume.
Despite these differing perspectives, KBRA remains optimistic about CRE activity in the coming years. The agency predicts that interest rates will remain stable and expects some stabilization within capital and CRE markets as borrowers adjust to new rate environments and lower valuations.
Moreover, KBRA anticipates potential increases in loan pool sales due to performance pressure on existing loans. Additionally, distressed debt may reemerge as securitizations become more prevalent again – factors that could contribute to higher issuance volumes not reflected in their initial forecast for 2024.
In conclusion, based on its expert analysis and market insights,Kroll Bond Rating Agency projects significant growth for commercial real estate loan originations over the next few years without any mention of specific organizations or regions such as Connect or Connect LA/Texas.
