After last week’s Federal Reserve Open Market Committee meeting it is clear that employment data will be the trigger for deciding when the central bank begins to raise interest rates. We think it is highly likely that the first interest rate increase will come in September as long as the employment data remains strong. This will not be negative for commercial real estate values because the reason for higher interest rates is an improving economy with strong employment growth. This economic environment will lead to stronger demand for all types of commercial real estate.
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