McCallum’s Musings on the Market – 11/10/2025

McCallum’s Musings on the Market!

• Despite the rise in retail asking rents, increased inflation and decreased sales continue to impact growth.
• Notices of default, scheduled auctions and bank repossessions are the highest in last 5 years. Delinquency rates rose for all five major property types in October, with office setting a new record high.
• Treasury yields increased despite the Fed’s interest rate cut. Higher yields mean CRE cap rates stay sticky and financing pain lingers.

Bridge loans start at 8.5%. Closing deals by year end 2025 is a balancing act. Securing CRE financing is a challenge – we are here to help foster the divide!

McCallum’s Music Pick: Fostering the Divide by Immolation

Case Study

• Sacramento, CA
• 3 week closing – bridge loan
• Industrial property
• 4,800 SF
• $600,000
• 1 year loan term; interest only payments
• NO appraisal required

John McCallum, Borrower’s Advocate, arranged interim financing for an owner-user seeking to consolidate business debt. Using trapped equity in their commercial property, the owners were able to save significant money on monthly expenses with the refinance. The industrial property appraisal was dated, but with additional comparative property documentation, the lender waived the appraisal requirement. The buyer required a quick financing commitment to meet the payoff timelines. Turton Commercial Real Estate secured ± 65% leverage to close on the 3-week timeline.

Featured Article

NATIONAL MULTIFAMILY FORECAST ADJUSTED LOWER DESPITE EXPECTED DRAWDOWN OF OVERSUPPLY: Rent growth expectations revised as new supply expected to outpace occupancy gains until late 2025.