Capital Markets / Page 5

Houston, TX Capital Markets How is Houston Performing? Individuals and businesses interested in purchasing, selling, or renting commercial properties are gravitating toward Houston for their CRE investments. They are drawn to the city’s thriving market that continues to experience rapid growth. Its strategic location, extensive transportation infrastructure, and robust economy make the market a prime […]

Interest Rate Hike On July 26, the Federal Reserve raised interest rates a quarter point to 5.25%-5.5%, the highest level in 22 years. The increase comes after a long-awaited pause in June. Prior to June, the Fed issued 10 consecutive hikes aimed at slowing historically-high inflation. Although the Fed’s actions have successfully lowered inflation to […]

Factors Influencing Cap Rates In CRE, cap rates play a pivotal role in evaluating the profitability and desirability of a property. Cap rates reflect the relationship between a property’s net operating income (NOI) and its market value. However, these rates are not static and are heavily influenced by various economic factors. Understanding the fundamental elements […]

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 […]