3min chapter

Animal Spirits Podcast cover image

Talk Your Book: No Bank Runs in Commercial Real Estate

Animal Spirits Podcast

CHAPTER

How to Calculate Commercial Real Estate Spreads

Office and this is not highly levered so again you have to be careful of what real estate you're talking about. If you're in that less than 60 percent ltv you're probably at 550 600 basis points. You don't want an ltv of 80 percent and then your real estate value to take a hit by 30 to 40 percent. That's when real estate owners have no incentive to stay in They literally can hand the keys back to the bank and walk away from that.

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