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Fed Rate Hikes To Hit Values, Special Servicing on the Rise, CBL Loses Virginia Mall

A Weekly Look at the Commercial Mortgage-Backed Securities Business
The latest raise in borrowing rates by the Federal Reserve, chaired by Jerome Powell, is prompting concern for property values. (Getty Images)
The latest raise in borrowing rates by the Federal Reserve, chaired by Jerome Powell, is prompting concern for property values. (Getty Images)
CoStar News
September 29, 2022 | 2:22 P.M.

Fed Hikes Could Hit Values: The Federal Reserve’s latest three-quarter bump in the borrowing rate is going to bring pain to commercial real estate values, according to new analysis by Alan Todd, commercial mortgage-backed securities strategist for Bank of America Securities. “We think commercial real estate values could adjust by as much as 20% to 30% over the medium term,” Todd wrote.

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