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How the Fed’s Sixth Interest Rate Hike Will Impact CRE Development in 2023
In early November, the Federal Reserve raised interest rates for the sixth time this year to curb soaring inflation. The interest rate for federal funds to 3.75 to 4%, its highest level in 14 years. The Fed indicated more rate hikes are coming in 2023. The government’s fiscal policy shift has significant implications for the
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The State of CRE Construction Pricing and How Technology Can Help
Rising construction costs are plaguing the commercial real estate industry. Since the start of the pandemic, prices for materials have increased more than 35%, making it one of the most pressing concerns for developers—but for more than a year, developers have been battling a secondary issue: price volatility. We covered the topic last summer when
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Why CRE Developers Are Still Coming Up Smiling
You might call it survival of the fittest. Developers are managing to persevere through scores of global, domestic, and local challenges to expand construction pipelines and push projects forward. Despite all the obstacles, rising interest rates, inflation, a defunct supply chain, a looming pandemic, and war in Europe—US construction volumes grew in the year’s first
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Why Industrial Real Estate Development is Getting More Difficult
The U.S. industrial real estate market entered a boom period due to the rapid expansion of e-commerce amid the onset of the coronavirus pandemic. Leading providers like Amazon snapped up logistics buildings to quickly meet an unprecedented surge in demand. But for the first time in two years, the segment has begun to stagnate nationwide.
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Is the Hotel Real Estate Market Revival Here to Stay?
Hotel revenue plummeted in 2020 as COVID-19 prompted worldwide travel restrictions and self-quarantine orders, but it has begun to recover recently.
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3 Trends That Will Shape the Commercial Real Estate Sector in 2023
On balance, 2022 has been a good year for commercial real estate. S&P Global estimates transaction volumes will total $800 billion, with the industrial, retail, and multifamily asset classes driving activity. This year also saw less proven property types like cold storage, data center, and life sciences emerge as investment magnets.
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What the Housing Market Slowdown Means for Real Estate Developers
At the start of this year, the American residential real estate market was red hot, with home pieces exceeding $400,000 for the first time ever in the second quarter. But rising inflation, a recession, and multiple interest rate hikes have cooled it off considerably. Multinational banks and market analysts don’t believe the segment will not improve
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The Return to the Office Trend is Accelerating on the East Coast
Although the Centers for Disease Control and Prevention (CDC) loosened its COVID-19 recommendations in August, U.S. workers still aren’t rushing back to the office.
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Is Inflation Anxiety Hurting the Retail Real Estate Market?
Earlier this month, Bisnow reported that foot traffic was down at U.S. grocery-anchored retail centers in the U.S. during the third quarter due to inflation. Retail industry analytics provider Placer.ai recorded a 3.93% decrease in grocery store visits in Q3. That trend could be troubling for the retail real estate market as grocery stores are