Real Estate's Ride Gets Bumpier Amid Banking Troubles
A reporter from Law360 spoke with Dominic J. De Simone about how the fallout from the failure of Silicon Valley Bank is causing turmoil in other markets, including commercial real estate.
"We continue to see the factors of loan maturity, higher costs, higher interest rates, maybe a little bit more conservative capital, maybe even more constraints as things play out. That's not a good formula, and eventually the math will catch up on a lot of deals over the next couple years that will just not be able to be refinanced, barring significant changes in some of those factors," he said. "But that isn't necessarily universal, and it certainly doesn't mean that every deal won't be able to work itself out. I think there will be deals that can be and will be worked out. I think there will be other capital sources that will step in to help facilitate that."
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