- July 1, 2023: Vol. 15, Number 7

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Commercial real estate debt investing holds promise for investors

by Jennifer Molloy

With high inflation and interest rates still on the rise, property investors have been on edge given credit lending drying up amid banking sector turmoil. That lack of market liquidity, however, is creating a tailwind for nonbank lenders in commercial real estate.

Investors should look for on-the-ground partners with significant experience and skills to originate, structure and manage risk in credit markets, according to a virtual roundtable with institutional investors, consultants and investment managers held 10 May by Institutional Real Estate, Inc about current opportunities in the commercial real estate debt sector. The in-depth strategy session was moderated by Reno Sio, managing director, Asia Pacific, at IREI.

Key takeaways include the following for the Australian market:

Since about 2016, Australian banks have been gradually reducing their commercial real estate exposure (primarily development or construction funding), largely because of regulator

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