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space. And tariffs could absolutely be a headwind" especially with the cost of lumber and <br />steel. <br />"When we're looking at construction budgets," he said, "it would be prudent to have larger <br />contingencies for things that are out of the builder's control." <br />However, he added, "interest rates don't look like they're headed down, so that's not going to <br />save the day for a lot of these borrowers who might not be in the best position. <br />"I think we need to see more data on that front," he said. "We'll see what the administration's <br />actual results are, but I think that it's a huge risk. If tariffs come through our economy, that <br />will absolutely be inflationary." <br />Moratelli noted that many commercial and industrial borrowers are opting for longer -term <br />loans. <br />Richard Morgan of Kirkpatrick Bank, left, weighs in on trends in banking as Chris <br />Maughan of Alpine Bank, center, and Tom Chesney ofAMG National Trust Bank <br />listen. Dallas Heltzell/BizWest <br />"The difference is so small," she said, "and to have that locked in for budget planning, the <br />appetite seems to be 'Let me lock this in so I don't have to guess and be whiplashed if things <br />change."' <br />Noting that pandemic -era interest rates hovered around 4% and are now closer to 7%, <br />Morgan said that much commercial real estate debt is coming due. <br />"It's projected that over $600 billion in commercial mortgages are coming due in each of the <br />next three years," he said. "So if you're well over a trillion dollars in debt coming due, that's <br />going to have to be dealt with. Not all those properties are going to be refinanceable. You <br />just hope that you have a strong relationship and a strong borrower, strong financially, that <br />can stand behind their properties and/or their guarantee." <br />