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Market Updates

Fed Rate Decision Welcome News for CRE Borrowers | NREI

The Fed decided to maintain the current level of interest rates at 0.25 to 0.50 percent, following the two-day discussion of economic outlook both globally and in the United States. The Fed also reiterated that the federal funds rate should increase “gradually,” proving those in the commercial real estate industry who expected four interest rate hikes this year wrong. 
According to Fed Chair Janet Yellen, “The median projection for the federal funds rate rises only gradually, to 9/10th of a percent late this year, and 1.9 percent next year. As the factors restraining economic growth are projected to fade further over time, the median rate rises to 3.0 percent by the end of 2018, close to its longer run normal level. Compared with projections made in December, the median path is about one-half percentage point lower this year and next.  The median longer run normal federal funds rate has been revised down as well.”   Continue reading Fed Rate Decision Welcome News for CRE Borrowers.
Written by Diana Bell.

Real Estate Economic Committee Update (2015 Q4)

TCN Worldwide Economist, Hugh F. Kelly, PhD, CRE Featured in December 2015 Commercial Property Executive
Economist Hugh F. Kelly PhD, CRE, who leads TCN’s Real Estate Economic Committee, has published an article we thought would be of interest to our members. Dr. Kelly is Clinical Professor at New York University’s Schack Institute of Real Estate where he has taught for 30 years. He is widely cited in the real estate industry and is a frequent speaker around the world.
Most recently, Dr. Kelly researched and composed TCN’s new “State of the Market” Quarterly Regional Market Reports (State of the Market – Central Region 2015 Q4 Central). He will be tasked with evaluating real estate trends in the markets that TCN’s member firms serve, generating quarterly reports for the international network’s members to use and share with clients.
To read Hugh Kelly’s article, “Warning Signs: Are Risks & Returns Getting Out of Balance?,” please click here.
To access this month’s issue of CPE in its entirety, please click here.