Category: Economic Trends

Category: Economic Trends

We usually think of capital as something which has value. Traditionally we have defined that value by the willingness of borrowers to pay interest and by the returns which investors see as acceptable. But now we have a new consideration. 
Current real estate interest rates are in free-fall, now at depths never seen in the US. We can blame the COVID-19 pandemic in part for today’s ultra-low interest rates, but the reality is that rates have largely been in decline since the 1980s. It hasn’t been a straight line down, but the general trend has been lower and lower rates over time.
Inflation is the economic worry of the moment, a headache that could affect commercial real estate over the coming months. But should CRE actually be seen as a hedge against inflation?
In an effort to merge close-knit communities with urban-style living, developers and investors have sought innovative ways to create a lifestyle setting where the opportunity to work, live, shop and play can all be found in relatively close proximity. The result has been a rise in modern mixed-use properties, which are generally a fusion of two or more uses, including commercial, residential or retail space.
The sustainable real estate market continues to expand by impressive proportions.
Premier Office Magazine interviewed KBS CEO Charles J. Schreiber for his perspectives on the Commercial Office Market.
From “phygital” to fulfillment, industrial to ESG, there’s an evolutionary resurgence in retail that presents new opportunities for innovative commercial real estate companies.
As 2023 approaches, the big question for commercial real estate (CRE) is what happens next. We’re leaving the world of pandemic economics behind — along with a series of shifts and spikes no one had fully anticipated. The most basic issue for the coming year concerns the value of money. Will the inflationary spike that began in 2022 continue into the coming year and beyond? And what does it mean for CRE?

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