Fed Cuts Interest Rates By 50 Basis Points

At long last, it’s here.  The Federal Open Market Committee cut the target range for the federal funds rate by a surprising 50 basis points Wednesday, the first rate reduction since the onset of the coronavirus pandemic. The move came alongside a Federal Reserve projection that it will cut rates by an additional 50 bps [...]

By |2024-09-25T17:01:02+00:00September 18th, 2024|.|Comments Off on Fed Cuts Interest Rates By 50 Basis Points

Mortgage Originations Are Up 27% From Prior Quarter

CRE mortgage originations, for both commercial and multifamily properties, in 2024 Q2 were up 3% year-over-year and 27% over the first quarter, according to the Mortgage Bankers Association's Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. Measured year-to-date, the growth was 2%. Last year in the same quarter, Q1 to Q2 growth was 23%, while [...]

By |2024-08-30T16:01:52+00:00August 27th, 2024|.|Comments Off on Mortgage Originations Are Up 27% From Prior Quarter

Where Property Prices Are Trending by Type

Baselines are everything when calculating values over time. That includes property prices and where they're heading. Trepp did a recent analytic update of its Trepp Property Price Index (TPPI), which measures CRE price movements over time. "It is constructed based on proprietary CRE transaction data from Trepp and its partners using a repeat sales [...]

By |2024-07-10T17:08:19+00:00July 2nd, 2024|.|Comments Off on Where Property Prices Are Trending by Type

Industrial Rents Drop In Southern California For First Time Since 2009

Industrial rents in Southern California dipped in the first quarter, marking the first time they have decreased since 2009, according to the latest data from Savills. The drop is slight, less than $0.15 per SF in both Los Angeles and the Inland Empire, mirroring the size of the slump in 2009, according to Savills [...]

By |2024-04-20T02:01:31+00:00April 19th, 2024|.|Comments Off on Industrial Rents Drop In Southern California For First Time Since 2009

Higher Interest Rates, Lower Demand Equals Less Industrial Construction

It will take time for the markets to absorb the amount of space delivered over the last two years. During the pandemic, industrial properties were probably the hottest ticket around. The need to distribute and sell products at physical arms-length, the sharp explosion e-commerce, the shutdowns of businesses — logistics, warehousing, and the development [...]

By |2024-03-21T23:00:30+00:00March 21st, 2024|.|Comments Off on Higher Interest Rates, Lower Demand Equals Less Industrial Construction

Commercial Property Insurance Rates Continue to Increase

Peeping in at the corners of the U.S. CRE financing problems — rates too high, banks wary to lend, refinancing tough to get — are the various rising costs of commercial real estate properties. Expenses that act like a pry bar, pulling profit out of a property’s NOI. Rising insurance premiums and lower levels [...]

By |2024-02-15T19:22:19+00:00February 12th, 2024|.|Comments Off on Commercial Property Insurance Rates Continue to Increase

Top CRE Predictions for 2024

Last year took many twists and turns, some of which were forecast and many of which were not. Hopefully we are on a more predictable path this year as many of 2024’s expected themes have their seeds in 2023. Following are my top predictions for 2024 1. The booming industrial market will begin to [...]

By |2024-01-09T17:38:13+00:00January 3rd, 2024|.|Comments Off on Top CRE Predictions for 2024

Rising Vacancy Rates is Key Macro Trend for Industrial

The rise in vacancy rates in the industrial sector amid slowing demand and the wave of new supply, which will come to market over the next year, is the key macro trend for 2024, according to a new report from Jason Price, Senior Director, Americas Head of Logistics & Industrial Research, Global Research, US, [...]

By |2023-12-14T00:09:32+00:00December 14th, 2023|.|Comments Off on Rising Vacancy Rates is Key Macro Trend for Industrial

Cap Rates Under Pressure Amid 10-Year Treasury’s Climb

When the cost of debt is so high, the return becomes lower than what the 10-year actually pays. The 10-year US Treasury is currently at a level not seen since June 2007 – 4.79% after the Oct. 6 trading day and it was at 4.66% after trading on Oct. 10. Commercial real estate professionals – [...]

By |2023-10-17T23:15:35+00:00October 17th, 2023|.|Comments Off on Cap Rates Under Pressure Amid 10-Year Treasury’s Climb

The fight for Proposition 13 heads to the ballot

Last week, and despite the popularity of Proposition 13, the California Legislature passed two proposed amendments to the California Constitution that rip huge holes in that iconic taxpayer protection overwhelmingly approved by voters in 1978. But here’s the good news. These bills must be approved at a statewide election and, given the anger from [...]

By |2024-09-18T21:23:50+00:00September 16th, 2023|.|Comments Off on The fight for Proposition 13 heads to the ballot
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