This Greater Texas Podcast episode features a chat between host Sean Bukowski and Marino "Mo" Orlandi, VP of Commercial Real Estate at Harmony Bank Dallas,. Mo discusses his transition into the banking sector from IT. He talks about the nuances of commercial real estate, the rising interest rates impacting the sector, and how Harmony Bank continues to selectively lend to small and mid-sized builders and investors.

Takeaways

- Commercial real estate interactions primarily focus on small to medium-sized builders, developers, and investors.

- The importance of maintaining a selective lending approach that values client relationships and necessitates a deposit relationship with the bank.

- Current challenges in the real estate sector include rising interest rates that impact deal flows and lending practices.

- In view of challenges, banks like Harmony lean towards smaller, manageable projects and cautious towards retail and high-rise developments without solid financial grounding.

- Federal Reserve meetings and the political landscape could potentially influence future interest rates.

- Issues like insurance rates, recalibration of expectations among market players, and agility in changing economic conditions are paramount.

- Harmony Bank tends to be cautious with retail and office spaces due to rise of hybrid work trend, favoring industrial and multifamily projects.

- Texas' progressive real estate market growth is attributed to business-friendly policies and consistent influx of people & businesses.

- The need for adaptability, preparedness, and strategic planning is crucial in navigating the complex environment of commercial real estate.

- Despite challenges, there persists an optimistic outlook for new developments and opportunities in commercial real estate.