CRE News & Analysis
2 articles
Market Mood
Canadian Firms Invest $9B In U.S. Real Estate Amid Trade War
Canadian firms invested $9 billion in U.S. real estate over the 12 months ending in June, an increase from the $5 billion rolling average at the end of the previous quarter. In the year through June, 32% of the capital raised for global acquisitions was directed to the U.S., up from 19.3% in the prior 12 months. This trend continues despite escalating tariffs between the U.S. and Canada. For ordinary investors, these figures highlight ongoing opportunities in U.S. real estate despite geopolitical tensions.
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Office Loans: $12.1B Facing DSCR Stress Amid Occupancy Claims
Trepp identified $12.1B of performing securitized office loans that have cash flow below debt service out of $97.2B reviewed. Notably, $5.17B of these loans are for properties with at least 80% occupancy but coverage ratios below 1.00x. A significant portion of this shortfall, $1.46B, is attributed to free rent, with 280 Park Avenue accounting for $1.075B. Understanding these dynamics is essential for lenders and investors, as they may misinterpret low coverage as a leasing problem rather than operational expenses. This analysis impacts how these loans may be priced in the market.
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