McCallum’s Musings on the Market – 10/21/2025

McCallum’s Musings on the Market!

• Property-level metrics continue to be the focus. Higher expenses (insurance, utilities, supplies & maintenance) are not offset by a $ per $ increase in rental income.
• Occupancy rates suggest stabilization entering in the end of Q4.
• Recent appraisals reflect value compressions – indicating a minimum of 10% price deprecation from 2023 & 2024 market highs.
• 5yr & 10yr fixed interest rates for Industrial and Multifamily assets continue to be favorable – recent quotes range from the high 5%’s to low 6%’s.

Call today for commercial real estate financing for year-end closings! Be encouraged and have some PAINKILLER!

McCallum’s Music Pick: Painkiller by Judas Priest

Case Study

• Citrus Heights, CA
• 26,842 SF
• Retail property
• ± 2.00 AC parcel
• $3,600,000

John McCallum, Borrower’s Advocate, worked with the owner for the refinance of a multi-tenanted retail property. At time of purchase, the property was partially occupied and needed property improvements to increase occupancy. Upon completion, the owner sought to obtain a cash-out refinance to pull out the equity and take cash-out proceeds. Sized to a 1.35 dscr, Turton Commercial Real Estate provided a $3.6MM ten year loan and provided over $1.8MM in unrestricted cash-out proceeds to the property owner. Pricing was 5yrT + 2.5%

Featured Article

ECONOMY AT A GLANCE – POLICY RATE: The federal funds rate is the interest banks charge each other for overnight loans, set within a target range by the Federal Open Market Committee (FOMC). The Fed influences this rate through tools like interest on reserve balances and overnight reverse repurchase agreements. Changes to the rate affect broader economic conditions, including spending, inflation, and employment.