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

Here’s What’s Driving Industrial Growth In 2022

Overbuilding, a more volatile geopolitical situation, and physical obsolescence of older, less modern space are some of the sector’s headwinds. The continued dominance of e-commerce, coupled with shifts in inventory models and supply chain configurations, will continue to be major tailwinds for the industrial sector as we head further into 2022, according to a [...]

By |2022-02-18T06:02:44+00:00February 18th, 2022|.|Comments Off on Here’s What’s Driving Industrial Growth In 2022

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

With The Infrastructure Bill Passed, CRE’s Wait For Its Effects Begins In Earnest

As the bipartisan infrastructure bill awaits President Joe Biden’s signature to become law, the commercial real estate industry awaits the effects of $550B in new spending. It could be waiting a long time. The nature of infrastructure projects is long-term — doubly so for the transformational projects the bill is supposed to make possible. [...]

By |2021-11-29T17:54:42+00:00November 15th, 2021|.|Comments Off on With The Infrastructure Bill Passed, CRE’s Wait For Its Effects Begins In Earnest

Global Supply-Chain Problems Escalate, Threatening Economic Recovery

Global Supply-Chain Problems Escalate, Threatening Economic Recovery Component shortages, surging prices of raw materials and transportation backups compound the bottlenecks Global supply-chain bottlenecks are feeding on one another, with shortages of components and surging prices of critical raw materials squeezing manufacturers around the world. The supply shocks are already showing signs of choking off the [...]

By |2021-10-20T16:28:16+00:00October 20th, 2021|.|Comments Off on Global Supply-Chain Problems Escalate, Threatening Economic Recovery

Industrial Vacancy Below 1% Near Nation’s Busiest Port

The Ports of Los Angeles and Long Beach — together, the nation’s busiest — continue to experience record volumes, leading to double-take-worthy industrial fundamentals nearby. The Port of LA reported that between June 2020 and June 2021, it broke eight monthly records and experienced the top four individual months in its 114-year history. Import volumes [...]

By |2021-09-03T23:35:02+00:00September 1st, 2021|.|Comments Off on Industrial Vacancy Below 1% Near Nation’s Busiest Port

President Biden’s Proposed Tax Law Changes and Real Estate

President Biden is expected to release shortly a 2022 federal budget, which will include the President’s proposed tax law changes. With the Democrats currently controlling both houses of Congress, new proposed tax legislation is anticipated to be introduced by the Biden administration into Congress in the fall of 2021. To facilitate the enactment of [...]

By |2021-05-10T23:22:31+00:00May 10th, 2021|.|Comments Off on President Biden’s Proposed Tax Law Changes and Real Estate