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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
Payoff will save Industry property owners over $49 million annually and will deliver over $36 million to local taxing entities including school districts, special districts and the County During today’s Industry City Council meeting, Finance Director, Yamini Pathak, announced that in July, the City had paid off the last three (bonds) of a total [...]
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 [...]
Lawmakers Approve Measure Aimed at Limiting Locations of New Inland Empire Industrial Buildings The latest effort to rein in what critics see as the creep of warehouse development near residential areas around the country took a step forward in California, where state legislators are seeking to clamp down on one of the nation's biggest [...]
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 [...]
