Commercial real estate, and commercial real estate credit, have not been without challenges recently. Rising interest rates have changed the goalposts for many projects, and we’ve seen numerous commercial builders fail across the country.
Whilst the sector is facing a tough time, there are also some strong, long-term, structural tailwinds in play – namely the undersupply of housing and high immigration levels.
All this is to say nothing of the regulatory shift that has seen the major banks move out of this space, allowing non-bank lenders to fill the void.
So, how does one make sense of the space right now? Furthermore, how does one determine the good opportunities from the less so, as everyone rushes in to fill the void?
For his thoughts on this and more, Brae Sokolski joins Chris Conway at livewire on an episode of The Pitch, helping to educate investors on commercial real estate credit.
“The regulator has looked at the banks and determined that they’re overexposed in commercial real estate credit and disincentivised them through a number of different regulatory instruments… which has created an enormous vacuum in the Australian market.”
Executive Director and Founder