The TreppWire Podcast: A Commercial Real Estate Show 354. Behind the Debt Yield Metric in Commercial Real Estate with John Barkidjija of Byline Bank
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Sep 23, 2025 In this engaging discussion, John Barkidjija, Executive VP at Byline Bank and a seasoned expert in commercial real estate, dives into the significance of the debt yield metric, revealing why it's a vital tool in CRE analysis. He reflects on lessons gained from past market downturns like the Great Financial Crisis and how his legal background informs his innovative problem-solving. The conversation also touches on macroeconomic factors affecting the market, the implications of AI on office spaces, and evolving bank regulations. A must-listen for industry insiders!
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From Lawyer To CRE Dealmaker
- John accidentally entered CRE after law school and an MBA and found deal work suited him.
- He built a specialty in hotel and adaptive reuse lending, financing over 10,000 rooms and large condo portfolios.
Debt Yield As A True Shortcut
- Debt yield isolates loan risk from changing interest rates and amortization assumptions.
- John uses it as a simple shortcut to compare historical loans to today's higher debt yield expectations.
Why Debt Yield Became Dominant
- Debt yield rose in prominence as interest rate volatility made DSCR comparisons unreliable.
- It reduces assumptions about future rates and amortization, like a cap rate simplifies valuation.