Cap Rates Might Finally Start to Rise Again

Slowing asset growth would be the key according to First American Financial Corporation According to a First American Financial Corporation analysis, cap rates might finally start to recover some of their value. The firm’s potential capitalization rate (PCR) model for the first quarter of 2022 “estimates capitalization rates based on the historical relationship between [...]

By |2022-07-12T14:49:08+00:00July 6th, 2022|.|Comments Off on Cap Rates Might Finally Start to Rise Again

Yes, CRE Can Be An Inflation Hedge, With This Caveat

The key to CRE as an inflationary hedge is that cash flow of properties must increase enough to counteract any rise in cap rate. Commercial real estate has long been regarded as an inflation hedge, but economists from Moody’s Analytics say that adage will be tested this month as the Fed begins the first [...]

By |2022-04-19T16:51:20+00:00April 15th, 2022|.|Comments Off on Yes, CRE Can Be An Inflation Hedge, With This Caveat

Four ways the Fed’s interest rate hike could affect you

Federal Reserve approves first interest rate hike in more than three years, see six more ahead The Fed’s move on Wednesday attempts to address soaring prices by making it more costly to borrow money. It raised what is know as the federal funds rate, the interest rate banks use to lend money to each [...]

By |2022-03-17T17:51:00+00:00March 17th, 2022|.|Comments Off on Four ways the Fed’s interest rate hike could affect you

Fed Primed To Raise Rates in March

The Federal Reserve announced it will hold its policy rate near zero but it expects to begin raising rates “soon,” which Fed watchers widely interpret to mean at its next meeting. The statement implies that the central bank's policy goal of maximum employment appears to have been reached, allowing committee members to focus on [...]

By |2022-02-03T16:13:06+00:00February 3rd, 2022|.|Comments Off on Fed Primed To Raise Rates in March

Fed Clears a Path for Higher Interest Rates in 2022

The Federal Reserve Open Market Committee announced some significant changes in monetary policy: a faster tapering of bond purchases and the possibility of as many as three rate hikes in 2022. The reasons are concern about inflation, which has been more dogged than the institution had expected, and an improved job landscape. The question [...]

By |2021-12-28T17:16:46+00:00December 28th, 2021|.|Comments Off on Fed Clears a Path for Higher Interest Rates in 2022