FED Shifts Gears: A Positive For CRE?
Is the Tightening Cycle Nearing an End? Implications For CRE
Slowed Pace Of Rate Hikes Welcome News For Investors
The 25 bps Fed Rate hike together with Chairmen Powell’s press conference tell us that the tightening cycle may be nearing its end
Stable financial condition, even at higher rates than seen in 2019, will allow well positioned investors to more accurately value properties and make strategic decisions
Flattening Rate Trajectory Adds Clarity To Lending Markets
The prospect of reduced interest rate volatility will allow lenders to narrow their safety spreads; thereby reducing lending rates
Secure financing and less rapid changes to rates will give potential buyers the information they need to be active participants in the market
As Uncertainty Abates, Investors Can Better Lock in Strategies
As volatility tappers and the expectation gap narrow, investors can more aggressively pursue properties
As buyers obtain clarity sellers will be better suited to make decisions, aiding price discovery
*Fed Funds Rate through March 23; CPI through February
Sources: Marcus & Millichap Research Services, BLS, Federal Reserve
