Capital Markets / Page 4

Commercial Real Estate Outlook A year of bank closures, rising interest rates, unrelenting Fed rate hikes, moderating rent growth, and transaction declines have made quite the uphill battle for commercial real estate. These market disturbances have amplified economic uncertainty and led several investors and owners to wonder what will happen next. However, several CRE sectors […]

Short-Term Real Estate Debt Financing vs. Long-Term Debt The banking industry plays a crucial role in facilitating economic growth and stability throughout the United States. However, regional banking issues have recently emerged as a significant concern as rising short-term interest rates (most notably construction financing and short-term debt instruments), have increased significantly and have impacted […]

Macro-Economic Update In 10 of the last 12 Federal Open Market Committee (FOMC) meetings, the Fed has raised the federal funds rate. This base rate was 0.25 to 0.50 percent at the beginning of 2022 and is now 5.00 to 5.25 percent. However, despite a long string of rate hikes, Fed Chair Jerome Powell announced […]

Capital Markets | Multifamily Market Report Market Overview The Effective Federal Funds Rate currently stands at 5.08 percent as of June 12, 2023. This comes after 10 consecutive rate hikes, beginning in March 2022 and the most recent on May 3, 2023, up by 25 basis points. As a result of these hikes, lending has […]

Empowering the Housing Market The Federal Housing Administration (FHA) has recently announced a significant change that is set to have a positive impact on the multifamily housing industry. According to a press release by the FHA, the agency has raised the threshold for large multifamily loans from $75 million to $120 million, marking the first […]

Geoffrey C. Arrobio Interview #1–How did you get into commercial real estate, and what led you to Matthews? While in grade school, one of my closest friends was Christopher Rising (who now runs Rising Realty in Los Angeles), his father, Nelson Rising, was a commercial real estate developer at the time with Maguire Partners. I […]

Interest Rates vs. Cap Rates The real estate market is a complex and ever-changing landscape influenced by various factors, with interest rates and cap rates playing a crucial role. Understanding the dynamic relationship between these two factors is essential for investors, developers, and industry professionals alike. In this article, we delve into the impact of […]

Maximizing ROI in CRE In today’s competitive real estate market, maximizing Return on Investment (ROI) is crucial for success. Optimizing ROI requires strategic planning, thorough research, and informed decision-making. Whether you are a real estate investor or a property owner, these tips for optimizing your ROI will change the way you view your CRE investments. […]

Optimizing Investment Strategies in a Down Market In a changing commercial real estate market, investors should reconsider their investment portfolio and strategic outlook, evaluating whether their current investment principles are best practice for the current economic climate. As valuations and market fundamentals shift, private and institutional investors look for the best ways to continue NOI […]