McCallum’s Musings on the Market – 10/28/2025

McCallum’s Musings on the Market!

• Latest rise in U.S. consumer inflation won’t discourage further interest rate cutting by the Federal Reserve.
• Notices of default, scheduled auctions and bank repossessions highest in last 5 years.
• Property-level metrics continue to be the focus. Higher expenses (insurance, utilities, supplies & maintenance) are not offset by a $ per $ increase in rental income.
• 10yr Treasury Index stabilizes at 4% – suggesting new benchmark for interest rate spreads.

Call today for commercial real estate financing for year-end closings! Furious pace to year-end 2025….arm yourself with your FURY WHIP!

McCallum’s Music Pick: Fury Whip by High on Fire

Case Study

• Sacramento, CA
• ± 24,000 SF
• Office property
• $875,000
• 70% of purchase price
• 1 year loan term; interest only payments
• NO appraisal required

John McCallum, Borrower’s Advocate, closed an acquisition financing requirement on a ± 24,000 SF vacant office property in Sacramento, CA. As part of the off-market sale transaction, the buyer required a financing commitment to secure the purchase agreement. Turton Commercial Real Estate secured 70% leverage to close on the 3-week purchase timeline.

Featured Article

VALUES PLUMMET FOR DISTRESSED OFFICE PROPERTIES: Distressed U.S. office properties have lost more than half their value, threatening billions in losses for commercial mortgage investors, according to a CoStar analysis of 270 specially serviced loans in commercial mortgage-backed securities deals that have been reappraised in the past 12 months.