Over $1.5 trillion of commercial real estate loans are maturing in 2023, 2024, and 2025, the bulk of which were financed when base rates were near zero. They now require refinancing in an environment where rates are much higher and commercial real estate markets face economic pressures from employees’ lingering reluctance to return to the office and new needs for space in the post-pandemic landscape. To address this wave of maturing commercial real estate debt, market liquidity must be restored and borrowers’ ability to raise capital in this challenging economic environment must be preserved.

In the wake of the U.S. banking turmoil of March 2023, federal bank regulators are considering an increase to capital requirements for the nation's largest banks —those with $100 billion or more in assets—by as much as 20%. This could significantly affect liquidity for commercial real estate transactions, impact asset values, and influence economic growth. The proposed changes to large bank capital requirements would implement the final components of international banking regulations known as the “Basel III endgame.”

Foreign investment is a major source of capital for U.S. commercial real estate, leading to job creation and economic growth for communities throughout our nation. Some policy measures at the national and state level have sought to restrict, sometimes successfully, foreign investment in U.S. real estate to protect the nation’s economic, military, and civil interests.    

A beneficial owner refers to an individual who owns at least 25% of a company or enough to exert significant control over it. Beginning in January 2024, the Corporate Transparency Act (CTA) will require businesses to disclose information on their beneficial owners under regulations issued by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The CTA aims to prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity.

The evolving threats and crises of today's world, primarily COVID-19 and the increasing occurrences of natural disasters, has highlighted the lack of and need for commercial real estate insurance coverage. Inadequate coverage will lead to economic uncertainty, harm stakeholders, and undermine the growth of communities.

In many lines of commercial insurance, pandemic-related coverage has been withdrawn or restricted going forward. Additionally, risks from natural disasters like floods, hurricanes, wildfires, hail, tornadoes, and drought cost the U.S. billions of dollars each year.

Legal cannabis-related businesses (CRBs) face challenges obtaining bank accounts, and commercial property owners face legal challenges of taking on CRB tenants without safe harbor protections.

Federal and state law differences on cannabis policy leave banks and real estate providers trapped between their mission to serve lawful businesses in local communities—and the threat of federal enforcement action.