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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
