Higher Interest Rates, Lower Demand Equals Less Industrial Construction

It will take time for the markets to absorb the amount of space delivered over the last two years. During the pandemic, industrial properties were probably the hottest ticket around. The need to distribute and sell products at physical arms-length, the sharp explosion e-commerce, the shutdowns of businesses — logistics, warehousing, and the development [...]

By |2024-03-21T23:00:30+00:00March 21st, 2024|.|Comments Off on Higher Interest Rates, Lower Demand Equals Less Industrial Construction

Commercial Property Insurance Rates Continue to Increase

Peeping in at the corners of the U.S. CRE financing problems — rates too high, banks wary to lend, refinancing tough to get — are the various rising costs of commercial real estate properties. Expenses that act like a pry bar, pulling profit out of a property’s NOI. Rising insurance premiums and lower levels [...]

By |2024-02-15T19:22:19+00:00February 12th, 2024|.|Comments Off on Commercial Property Insurance Rates Continue to Increase

Top CRE Predictions for 2024

Last year took many twists and turns, some of which were forecast and many of which were not. Hopefully we are on a more predictable path this year as many of 2024’s expected themes have their seeds in 2023. Following are my top predictions for 2024 1. The booming industrial market will begin to [...]

By |2024-01-09T17:38:13+00:00January 3rd, 2024|.|Comments Off on Top CRE Predictions for 2024

Rising Vacancy Rates is Key Macro Trend for Industrial

The rise in vacancy rates in the industrial sector amid slowing demand and the wave of new supply, which will come to market over the next year, is the key macro trend for 2024, according to a new report from Jason Price, Senior Director, Americas Head of Logistics & Industrial Research, Global Research, US, [...]

By |2023-12-14T00:09:32+00:00December 14th, 2023|.|Comments Off on Rising Vacancy Rates is Key Macro Trend for Industrial

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
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