Vesta Capital founder and CEO Marc Kulick explored the implications of potential shifts in the 2025 CRE market in a recent interview.

Tulsa, United States, March 18, 2025 -- In the announcement, which was originally published by real estate news outlet GlobeSt, Kulick spoke on a number of topics relevant to the global CRE market as well as his own business, Vesta Capital. He explored the implications of recent actions by the Federal Reserve, and the impact that a teetering debt market could have on the markets in 2025.

For more information, visit https://www.globest.com/2025/02/19/is-2025-the-end-of-extend-and-pretend/?slreturn=20250310134155

As Kulick explains, the past 2 decades have seen the unmitigated rise of the so-called “extend and pretend” strategy in the real estate market. Developed in the wake of the 2008 financial crisis, the controversial practice has seen lenders artificially extending the maturity date of loans in order to avoid recognizing a loss—a strategy which has loomed for years over the industry, and which could now be on the way out.

While he and other experts remain confident that the market will not collapse outright under the weight of this strategy, he predicts that lenders, faced with increased pressure from the Fed, will become more aggressive in the coming months and years. Already, lenders are putting in place stricter requirements for principal payments, among other tightening restrictions.

In the event that these loans were allowed to mature, analysts, including Kulick, warn that the effect on the market could be disastrous. Small firms have benefited most from extend-and-pretend, as the strategy has allowed them to take more substantial risks, but an end to the practice could result in closures, bankruptcy, and significant impacts on borrowers as well.

Despite this, Kulick expressed optimism regarding paths forward, suggesting that falling interest rates or alterations to the Treasury yield could both have a stimulating effect on buyer behavior. Even now, without those factors in play, Kulick states that he believes that markets will grow in 2025 at a rate consistent with 2024’s growth.

He concludes the announcement by stating, “If we see stability in the debt markets, it would create stability overall. Then you’d see transaction volume increase which would obviously be good for the economy.”

About Vesta Capital

Vesta Capital is a real estate investment company currently overseeing over 10,000 rental units across 3 states. The company offers a balance of high-quality, compassionate support for the communities they serve, backed by a team of over 350 qualified employees allocated to their dedicated subsidiary, Vesta Realty.

More information can be found at https://www.globest.com/2025/02/19/is-2025-the-end-of-extend-and-pretend/?slreturn=20250310134155

Contact Info:
Name: Mario Gipson
Email: Send Email
Organization: Vesta Capital
Address: 6911 S 66th E Ave Suite 100, Tulsa, OK 74133, United States
Website: https://www.vestarealproperty.com/

Source: PressCable

Release ID: 89155581

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