Strength, uncertainty seen in post-pandemic NY commercial real estate market

Patrick HarneyMessenger Post Newspapers USA Today Network

Interest rates for mortgages have been moving up in recent months, which can be a welcome sign for investors looking for a good return. But, the question of how it will affect actual lending rates to allow for future development and sales in the commercial real estate market is far from clear, in Joseph Brennan’s view.

“It depends. I mean, everybody’s pricing off the same index,” said Brennan, senior vice president and upstate New York market executive for S&T Bank.

That index is the U.S. Treasury’s 10-year notes yield, which is often used as a determinant in setting mortgage rates. And with multiple banks “flush with deposits, thanks to the Paycheck Protection Program,” it seems possible that there’s plenty of reason for optimism in 2021, even if it depends on “the risk of the project and the strength of the borrower.”


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