We work hard to stay on top of the news impacting our industry and our clients. In this section we share what we believe is most newsworthy so you don’t have to go looking for it.
Experts predict continuation of growth plateau for commercial real estate borrowing and lending
The commercial mortgage borrowing and lending market as a whole ended 2018 roughly flat compared to 2017. The growth plateau is considered the result of moderation in both property value growth and building net operating income. While the market as a whole has experienced a plateau, there were sectors that experienced a fourth quarter surge. Origination for apartment properties increased 22 percent and loans made for industrial properties rose 12 percent for the year. This article was originally provided through CoStar. Read the full article here.
Latest decision to leave Fed funds interest rate unchanged positive new for commercial real estate industry
The Federal Reserve delivered positive news for the commercial real estate industry after its March meeting. The central bank’s benchmark Fed funds interest rate was left unchanged in the 2.25 to 2.5 percent range. Most experts project rates will be held steady this year with just one interest rate hike in 2020. This policy of slow / no rate hikes combined with the still-low interest rates should continue to support demand for real estate and encourage capital flows into the commercial and multifamily property sectors while boosting prices. This article was originally provided through CoStar. Read the full article here.