In the face of rising interest rates and economic uncertainty, commercial real estate investments have seen both wins and losses in the first half of 2023. Multifamily, industrial, and local retail assets have delivered stable performances. However office space continues to struggle due to falling demand and a sharp increase
After a short pause in rate hikes, the Federal Reserve once again raised interest rates by 0.25% at their July meeting. This makes 11 increases in the last 12 meetings. Increasing interest rates slows economic growth, reducing inflation. It also raises the cost of debt. Unfortunately, the speed and volume
Multifamily has been the Darling of Commercial Real Estate for the past several years. In 2012, the JOBS Act enabled more people to access crowdfunding investments, like commercial real estate syndications. Something previously reserved for the ultra-wealthy and institutional investors. In addition to more access to opportunities, investors capitalized on
Last year the Federal Reserve began an unprecedented drive to reduce high inflation levels through interest rate hikes. Inflation spiked from 1.4% in 2020 to 7% in 2021. When it failed to correct itself in 2022, the Federal Reserve took action. After 10 consecutive increases, May numbers delivered promising news.
Economic uncertainty has been the theme for the last 12 months. Inflation ranged from 9.1% in June 2022 to 4.9% in April 2023. Its stubborn and slow decline resulted in the Federal Reserve raising interest rates from near zero to 5% to 5.25% in 14 months. Rapid rate increases caused
Between March 8 and May 1, 2023, four regional banks failed, representing three of US history’s four largest bank failures. While regulators and political figures declared the crisis over, we will likely see ramifications for some time. With all bank failures, concerns about its impact on real estate investments exist.
