The Latest Trends in Commercial Real Estate
The ebb and flow of the Commercial Real Estate (CRE) market is influenced by innumerable variables including the condition of the economy, population demographics, and government regulations, to name a few. While there's not a crystal ball that can give you definitive answers as to what the market will do, there are a few key factors that can give us a good idea. This year real estate professionals are monitoring these three trends in the market as indicators of what lies ahead for CRE. Interest Rates Historically interest rates have been a sound signifier of the state of the economy, so in December of 2015, when the Federal Reserve raised interest rates for the first time since 2006, the change definitely made headlines. Although the hike was only by a quarter of a percentage point (0.25%), which raised the target range to 0.25%-0.5%, this past December the Fed once again raised rates by a quarter of a point to a range of 0.50%-0.75%. And subsequent hikes are on the horizon; Fed