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 |2023-09-22T23:08:33+00:00September 16th, 2023|.|Comments Off on The fight for Proposition 13 heads to the ballot

Fed approves hike that takes interest rates to highest level in more than 22 years

The Federal Reserve resumes Interest Rate hikes with 11th increase since early 2022. As was widely expected, Federal Reserve officials announced another interest rate hike Wednesday afternoon, causing real estate companies to settle in for yet more price compression and sluggish financial markets. The increase came on the heels of positive inflation news earlier [...]

By |2023-08-01T23:14:53+00:00July 30th, 2023|.|Comments Off on Fed approves hike that takes interest rates to highest level in more than 22 years

Agreement Reached In West Coast Port Labor Dispute

Just over a week after business groups appealed to the Biden administration for help resolving a labor dispute at the Ports of Los Angeles and Long Beach, the Pacific Maritime Association and the International Longshore and Warehouse Union reached a tentative agreement. The deal’s full terms weren't released, according to CNBC, but the contract [...]

By |2023-06-22T21:25:28+00:00June 17th, 2023|.|Comments Off on Agreement Reached In West Coast Port Labor Dispute

Ultra Low Interest Rates Will Be Back — But That’s Not Entirely A Good Thing For Real Estate

Inflation was a blip, and long-term ultra-low interest rates will return — but only because world economic growth will be anemic. That is the not entirely upbeat conclusion of the latest IMF World Economic Outlook, which portrays inflation as a blip, not a global reset. The document looks at growth potential, inflation and interest rates, and [...]

By |2023-04-25T18:40:03+00:00April 25th, 2023|.|Comments Off on Ultra Low Interest Rates Will Be Back — But That’s Not Entirely A Good Thing For Real Estate

Powell Warns Of More Aggressive Interest Rate Hikes

The U.S. economy is growing faster than expected, keeping inflation high, so a more aggressive pace of further interest rate hikes might be necessary, Federal Reserve Chair Jerome Powell said in his Semiannual Monetary Policy Report to Congress on Tuesday. Rate increases haven't forced the economy into a recession or even slowed it down that much, as [...]

By |2023-03-07T22:46:26+00:00March 7th, 2023|.|Comments Off on Powell Warns Of More Aggressive Interest Rate Hikes

Redlands considers ban on all distribution warehouses

The Redlands City Council is considering banning new warehouse developments. The council held a public hearing Tuesday, Feb. 21, to discuss an ordinance recommended by city officials to regulate warehouse development and operations. The ordinance would have limited development and logistics operations with zoning regulations and requirements for new permits for development. That wasn’t enough for [...]

By |2023-03-07T22:59:46+00:00February 22nd, 2023|.|Comments Off on Redlands considers ban on all distribution warehouses

LA Approves Tax Increase on Real Estate Deals Over $5 Million

Los Angeles voters approved a tax on the sale of mansions and other multimillion-dollar real estate transactions to raise money for affordable housing in the second-largest US city. The measure, known as Proposition ULA, boosts the one-time transfer tax to 4% for property deals between $5 million and $10 million, and 5.5% for transactions [...]

By |2023-02-14T18:19:21+00:00December 8th, 2022|.|Comments Off on LA Approves Tax Increase on Real Estate Deals Over $5 Million

Clear Of Cargo Backlog, SoCal Ports Grapple With Diminished Shipping Volumes

Cargo volumes are down at the powerhouse ports of Los Angeles and Long Beach, and although some worry that the decline could stick, local CRE professionals are more worried about the impact of macroeconomic trends on the area's industrial market. Shipping backlogs and protracted labor negotiations led to an unlikely scenario at these ports: They've [...]

By |2022-11-16T19:23:11+00:00November 16th, 2022|.|Comments Off on Clear Of Cargo Backlog, SoCal Ports Grapple With Diminished Shipping Volumes

‘Dark Days Ahead’

For the leaders of some of the biggest investment vehicles in commercial real estate, the matter of whether the U.S. is on the verge of a recession is no longer a question of if, but when. Less than 24 hours after the Federal Reserve lifted interest rates by 0.75 percentage points, fund managers and other finance executives gathered [...]

By |2022-10-11T16:36:20+00:00October 3rd, 2022|.|Comments Off on ‘Dark Days Ahead’
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