Banks with less than $250 billion in assets account for 29.9% of the nearly $1.5 trillion in commercial real estate debt is maturing by the end of 2025.
SBA Lending
The Federal Reserve’s rate-raising campaign has put a notable crimp in financing for companies with smaller payrolls and valuations. The average rate for a loan from the U.S. Small Business Administration, which historically costs less than a bank loan, has reached double-digits, driving many small firms to borrow less.
Home Prices
The national median existing-home price fell 1.7% in April from a year earlier to $388,800, the biggest year-over-year price decline in eleven years. Median prices were down 6% from a record $413,800 in June.
Office Transactions
The total value of office property bought by investors in the first quarter of this year was $10.7 billion, down 68% from the same period last year.
Office Leasing
U.S. office leasing volume fell to 38.5 million square feet in the first three months of 2023, the third consecutive quarter of slowing demand and a 9.8% decline from Q4 2020. Leasing activity was also 10.7% less than was recorded in Q4 2022.
Office Return
About 58% of companies allow employees to work a portion of their week from home with the number of companies that require employees to be in the office full time declining to 42%, from 49% three months ago.
Oneok Magellan
Pipeline operator Oneok agreed Sunday to buy smaller rival Magellan Midstream Partners for about $14 billion, a deal that would form one of the biggest U.S. companies involved in transporting and storing energy.
Hospitality Wages
The Bureau of Labor Statistics published the latest average hourly earnings of employees in the accommodation sector and the preliminary average March wage stood at $23.33, the highest amount on record. The change from a year ago was an increase of just over 6%.
Job Satisfaction
Job satisfaction hit a 36-year high in 2022, reflecting two effects of the tight pandemic labor market: The quality of jobs improved as wages and work flexibility increased, and workers moved into positions that were a better fit. Last year, 62.3% of U.S. workers said they were satisfied with their jobs, up from 60.2% in 2021 and 56.8% in 2020.
Golden Handcuffs
Many Americans who want to move are trapped in their homes—locked in by low interest rates they can’t afford to give up. The reluctance of homeowners to sell differentiates the current housing market from past downturns and could keep home prices from falling significantly on a national basis.