Industry
Banking & Financial Services
We deliver consistent solutions to banking and financial services customers to address challenges, find solutions and facilitate business growth.
Each day we undertake thousands of valuations for the finance and banking sector from single asset valuations to multi-market, multi-property portfolios. We also have a proven track record in delivering purpose-built workplace precincts, critical trading environments and retail banking facilities.
In tandem, we partner with global, regional, and local banks, as well as institutional real estate lenders, to provide financial advisory services and deliver on our clients’ investment priorities.
Core Capabilities
Related Insights
-
Article | Intelligent Investment
Henry Chin identifies Australia’s biggest investment strengths and challenges
August 2, 2024
Crucial commercial property insights from CBRE’s Global Head of Investor Thought Leadership & Head of Research for Asia Pacific.
-
CBRE Research’s H1 2024 Lender Sentiment Survey finds:
Appetite for new loans over the next three months has increased for majority of lenders, 58% want to grow commercial real estate exposures with and no surveyed lenders intending to decrease their book. -
CBRE’s H2 2023 Lenders Sentiment survey finds:
Lender investment preference continues to be dominated in the Industrial & Logistics sector, followed by Residential. Lenders have increased their caution towards Office.
Appetite for new loans over the next three months is flattish for the majority of lenders.
For new developments, there is a sizable bifurcation on pre-commitment and pre-sales by asset class:
Almost no pre-lease required for Industrial lending
>60% pre-lease required for Office assets by most respondents
Largest cohort of lenders require 80%-100% of debt funding covered by pre-sales for Residential
The cost of debt, influenced by the official cash rate and bank bill swap rates (BBSW) remains at elevated levels. Official forecasts and surveyed lenders expressed no clear consensus view as to whether rates have peaked, and their expected trajectory over the next 12 months.
Credit margin expectations normalised following H1 2023’s survey, with 95% of respondents in H2 2023 expecting <20bps movement in credit spreads over the next 3-months.
A slight increase in hedging requirements, presumably in response to recent interest rate volatility
Preferred LVR requirements remained stable around 40-60% but this may come under pressure as assets are revalued in the next 6 months
ICR requirement of 1.5x for new investment grade lending remains a preferred metric amongst lenders. There has been an uptick in respondents requiring a 1.35x ICR to support new deals.
Contacts
Andrew McCasker
Managing Director, Debt & Structured Finance, Pacific
Tristan Gannan
Head of Tenant Representation, Office Occupier, New South Wales
