Commercial Real Estate Braces for Interest Rate Hike

For a while now, the commercial real estate industry has been bracing for interest rate hikes this month—the first increase since before the pandemic began. But record high inflation and a war in Ukraine which spiked energy prices may cause the Federal Reserve to take a more cautious approach when the announcement comes this afternoon, following two days of meetings by the Federal Open Market Committee.

Marcus & Millichap President & CEO Hessam Nadji and three CRE industry economists told Commercial Property Executive they expect the Fed to raise interest rates, which are at near-zero levels, by 25 basis points not 50 basis points as some economists had projected.