iBorrow’s Post

Interest rate cuts are fueling a rebound in commercial real estate, though different sectors are seeing varied results. Multifamily housing is on the upswing, while the office market continues to face challenges with vacancies and low demand. 📉 Navigating these complexities? Grady Hunt provides legal services in commercial real estate, including assisting you with negotiating your acquisition, leasing and sales transactions. 💼📑 Read the full article here: #CommercialRealEstate #InterestRates #MarketRecovery

The January 2025 Federal Reserve Beige Book highlights a complex picture for the commercial real estate market, with sales edging up while construction slowed due to high materials and financing costs. Regional performance varied—Boston and New York faced interest-rate-driven challenges, though NYC saw a slight office demand uptick in prime locations. Richmond and Cleveland ended 2024 with modest gains in nonresidential construction and CRE activity. While there’s cautious optimism in some markets, higher-for-longer interest rates and rising costs continue to shape the CRE landscape. Opportunity will present itself to those paying attention in 2025, but buckle up. Bio: https://lnkd.in/eB3g9bP3 Google Business Profile: https://lnkd.in/egn5jSck LinkedIn: https://shorturl.at/bmDMV Facebook: https://lnkd.in/eGTqGWuN Instagram: https://lnkd.in/eZMXQpjn TikTok: https://lnkd.in/ejfsyqfM #commercialrealestate #commercialproperty #CommercialLand #commerciallandforsale #warehousespace #officespace #flexspace #industrialspace #sandiegocommercialrealestate #sandiegorealestate #realestate #cre #realtor #realestateagent #realestateinvesting #property #commercial #commercialproperty #realestateinvestor #business #investment #propertymanagement #investmentproperty #residentialrealestate #forsale #retail #entrepreneur #construction #officespace #realestatebroker #EconomicInsights #InflationAnalysis #FedPolicy

How commercial real estate is faring midyear Despite higher-for-longer interest rates, multifamily, industrial and neighborhood retail remain strong. Learn which trends, challenges and opportunities to expect in commercial real estate in the second half of 2024. https://lnkd.in/gQtRHYGh

Commercial real estate recovery may be uneven

According to a recent GlobeSt.com. article, cap rates for small #multifamily properties averaged 6.0% in Q3, staying below the six-year high but up 31 basis points year-over-year. The risk premium over the 10-year Treasury yield has returned to pre-pandemic norms, reflecting a shift toward stabilization. The report by Arbor points to improving pricing, cap rates, and credit conditions thanks to easing interest rates, strong rental demand, and strengthened government-sponsored lending. Institutional investors are signaling that #CRE pricing may have hit bottom, setting the stage for attractive opportunities in 2025. Southern California’s Class B/C multifamily market shows similar trends: cap rates stabilizing near cyclical lows and solid fundamentals driven by demand. https://lnkd.in/gW-zF35B

Commercial real estate recovery may be uneven

The current commercial real estate landscape presents a variety challenges, so our Partners, Nancy Cox and Jamie Card, have shared their advice for property owners to weather the storm. They recommend establishing a team of advisors, being honest and upfront with your bank, communicating clearly, and repurposing spaces. Nancy and Jamie discuss each of these tips and more about the commercial real estate industry in this Rochester Business Journal article. Read it here: https://ow.ly/f9P550Rlhby #commercialrealestate #realestate #interestrates #postcovid

The multifamily market is on the rise! Find out why financing and sales volume indexes have hit record highs in our latest industry report. #Multifamily

Rundown on the state of multifamily from my trip to Vegas for NMHC this week with Lee Malchow: 1. Strong Appetite for Transactions: While interest in deals remains high, headwinds like debt costs and the bid-ask gap will keep transaction volumes lower throughout the year. 2. Rental Rates Under Pressure: New supply continues to put downward pressure on rents. However, this should begin to stabilize over the next 18-24 months as new construction starts slow. 3. Insurance Costs Creating Market Disruptions: As with other asset classes, rising insurance costs have become a significant factor in deal-making. Some groups have completely exited certain markets, while others have seen transactions fall apart due to unexpected cost increases. Despite these challenges, The Palomar Group's multifamily team continues to find success in navigating complex deals. Looking forward to tackling more in the year ahead!