The Gray Report Podcast

Will the Fed's Rate Hike Pause Restart CRE Markets?


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For CRE investors waiting to buy (or sell) properties, a rate hike pause may not be enough to encourage their re-entry into the market as investors expect further cap rate expansion in 2024. For multifamily specifically, confidence in longer-term asset performance has led to greater investor interest compared to other CRE sectors, but overall investment volume is lower than pre-pandemic averages.

Sources discussed in this episode:
Gray Capital: "Huge Buying Opportunity: Potential Multifamily Crash?" - https://youtu.be/TBZB9vpDW6M
Reuters: “Fed keeps rates unchanged, acknowledges economy is 'strong’” - https://www.reuters.com/markets/us/fed-poised-hold-rates-steady-despite-economys-bullish-tone-2023-11-01/
Independence Realty Trust: "Independence Realty Trust Announces Third Quarter 2023 Financial Results" - https://investors.irtliving.com/press-releases/press-release/2023/Independence-Realty-Trust-Announces-Third-Quarter-2023-Financial-Results/default.aspx
John Burns Research and Consulting: “Home Supply Glut?” - https://www.linkedin.com/posts/johnburns7_if-not-for-the-lack-of-resale-homes-we-would-activity-7124734200955510784-RlKv?utm_source=share&utm_medium=member_desktop
Jay Parsons (RealPage): “Cap rates are not (directly) correlated with interest rates” - https://www.linkedin.com/posts/jay-parsons-a7a6656_cre-capitalmarkets-multifamilyrealestate-activity-7124753714694819841-heSF?utm_source=share&utm_medium=member_desktop
Promarket (U Chicago Booth School of Business) - “Evaluating Concerns of Collapsing Commercial Real Estate Prices” - https://www.promarket.org/2023/10/10/evaluating-concerns-of-collapsing-commercial-real-estate-prices/
Apartment List: “National Rent Report, October 2023” - https://www.apartmentlist.com/research/national-rent-data
For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠
Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠
DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest.

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