• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Limon Net Lease Group

Limon Net Lease Group

  • Listings
    • National Listings
    • NYC Metro Listings
  • Who We Are
  • 1031 Exchange
  • Research
  • Financing
  • Services
    • Advisory
    • Capital Markets
    • Marketing
    • Research
    • Technology
  • Contact

What the Fed Rate Hike Means for CRE Investors

March 21, 2022 by Marcus & Millichap Research Services

What the Latest Fed Meeting Means for CRE Investors

Investor Sentiment on the Rise in Latest Investor Survey

  • Investor sentiment has fully recovered from the pandemic and reached its highest level since 2015
  • Suggests elevated CRE transaction activity in 2022
  • Inflation and rising interest rates are top investor concerns

Federal Reserve Takes Steps to Combat Elevated Inflation

  • The Fed increased overnight interest rates 25 bps at meeting last week; Could raise rates 6 more times in 2022
  • Fed will end Quantitative Easing this month after doubling balance sheet; Could shift to Quantitative Tightening
  • These efforts are meant to create a rising interest rate climate, meaning cost of capital is expected to rise

Dramatic Interest Rate Rise Could Deter CRE Buyers

  • A rate rise of 50 and 100 bps could result in 6% and 19% of respondents reducing their acquisitions, respectively
  • The expected Fed increase of 175 bps could slow activity for half of buyers over the course of the year
  • Buying now will help lock in favorable rates; Selling now will ensure the largest buyer pool to choose from

*As of 1H 2022
Sources: Marcus & Millichap Research Services, M&M/WMRE Investor Survey

Watch the Video Below

 

Filed Under: Research Brief

Primary Sidebar

Recent Posts

  • February FED Meeting CRE Implications
  • Three Factors Driving Investor Uncertainty
  • Best Property Types on a Five Year Horizon
  • How the Labor Market is Impacting the Economy
  • What’s in Store For Investors in 2023?

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • March 2020

Categories

  • Agent Opinion
  • Apartments
  • Client Webcast
  • Employment
  • Eviction Moratorium
  • Fox Business
  • GDP
  • Investor Sentiment Survey
  • M&M In the Media
  • Market Report
  • Multifamily
  • Multifamily
  • NYC Metro
  • Outlook Report
  • Research Brief
  • Retail
  • Self-Storage
  • Special Report

Footer

© 2023 Limon Net Leased Group

  • Listings
    • National Listings
    • NYC Metro Listings
  • Who We Are
  • 1031 Exchange
  • Research
  • Financing
  • Services
    • Advisory
    • Capital Markets
    • Marketing
    • Research
    • Technology
  • Contact

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2020 Marcus & Millichap and Limon Net Lease Group

Privacy Policy