KKR’s Loan Pipeline Hits $42B All-Time High As Landlords Flock Toward Alternative Lending

June 3, 2025 / no comments

Private equity giant KKR has hit a new record loan pipeline of $42B and doesn’t plan on slowing down anytime soon despite volatility from the fallout of sweeping tariffs and high construction costs.
Landlords are struggling to nail down financing as many lenders hold back, and property values are adjusting after the last few years of higher interest rates and the last few months of tariff concerns. 
As a result, KKR’s private credit commercial loan business is booming, KKR Real Estate Credit’s Matt Salem, Joel Traut and Patrick Mattson wrote in a note Tuesday.
Private credit loans can bring in annual returns of around 12%…

More Than Half Of U.S. Warehouse Space Built In Q1 2025 Is Vacant

June 3, 2025 / no comments

The U.S. industrial sector can’t seem to shake the effects of the pandemic-era wave of warehouse development.
Speculative development accounted for 71% of the 73M SF of industrial space that delivered in the first quarter, according to Cushman & Wakefield. The 45M SF of spec space was the lowest share of development completions since 2023, but the space all came online vacant, nudging vacancy up 30 basis points to 7%.