The direct impact on real estate of the collapse of two US regional banks over the weekend is likely to be relatively small. But we expect lending criteria to become more cautious in the short-term, which will weigh on the supply of real estate debt. There are also potential ramifications in specific markets – difficulties for tech firms to raise capital could accelerate the sector’s withdrawal from under-utilised office space on the West Coast, while Signature Bank’s exposure to NYC poses a risk there.
In view of the wider interest we are also sending this US Commercial Property Update to clients of our US Housing Market Service.
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