JP Reese’s Post

U.S. Commercial Real Estate Market Recovery Accelerates After the Federal Reserve’s first interest rate cut since 2020, the U.S. CRE market is seeing renewed momentum, particularly in interest rate-sensitive sectors. However, challenges persist in the office and multifamily segments. What’s driving this uneven recovery, and what does it mean for the broader economy? Read the full story on ForeMedia News: www.foremedia.tv/news #CommercialRealEstate #FedRateCut #RealEstateMarket #EconomicOutlook #ForeMediaNews

Cracks in the real estate sector are starting to pick up steam. NYCB and a number of other regional banks are continuing their stock declines today after yesterday's carnage. Barry Sternlicht, CEO of Starwood Capital Group, just came out stating that he believes the office sector as a whole will result in over $1 Trillion of losses. I believe the biggest issue is that the cost to carry real estate investments are starting to make less sense at the current trading prices. This is a manifestation of higher interest rates coupled with the higher costs to hold the asset relative to the annual growth rate in rents. The standard 3-5% rental increases of the past simply don't make sense in a softening market and don't cover the 5%+ annual increases in expenses. Stickiness in the labor market, inflationary pressures for materials, increases in taxes and insurance, and everything in between are putting massive pressure on bridge lenders and property operators. What should you do? If you are an LP, make sure you stress your deals to all these scenarios. Things can get ugly pretty quickly. If you are a GP, set realistic expectations and take big-time reserves for when things go south.

📊 Real Estate Fact Thursday: The US economy significantly benefits from new home construction, contributing over $3 trillion annually. This shows the vital role of real estate in national economic health and individual wealth creation. Stay with us for more such enlightening facts! #ThursdayTrivia #RealEstateEconomics #HomeConstructionImpact #NAREBRegion1 #EconomicContributor #PropertyMarket #WealthCreation #NationalEconomy

Lower interest rates alone are not going to be the ‘savior’ that many real estate operators are hoping for. What is much more important is how the broader economy reacts to those interest rates. This includes: —> Taming inflation —> Empowering consumer spending —> Growth in employment —> Stimulating the housing market I’d imagine getting those things right would provide a bigger contribution to real estate performance than just interest rates alone would. -- CC: Raheel Khawaja, Pebble Ridge Capital Group (PRCG)

Understanding the Housing Market's Continued Growth 📈 Despite high interest rates and cost of living pressures, home values have continued to rise this quarter, fueled by a persistent low housing supply. At ActOn Wealth, we're here to help you navigate these challenging market conditions with expert advice and strategic insights. Key Takeaways: Steady Growth: National home values increased by 1.8% this quarter, with regional areas outpacing capitals slightly. Perth Leads the Pack: Perth experienced a significant 6.0% increase, marking a 21.1% growth over the past year. Affordable Housing Segments Shine: Lower-value markets are seeing stronger growth, offering potential opportunities for investors and first-time buyers. Rental Yields Rising: As rents continue to climb, now might be a good time to consider investment properties with the national gross rental yield at its highest since 2019. Interested in making a move in the current real estate market or just curious about how these trends might affect your property investment strategy? 🏠✨ Head over to our website to find out more or get in touch with your advisor today. #RealEstateInvesting #HousingMarket #FinancialAdvice #ActOnWealth #PropertyTrends #InvestmentOpportunities #WealthBuilding

If you ask me, these numbers make you realize the importance of investing in real estate NOW more than ever! With median house prices skyrocketing and affordability hitting new lows, it's clear that the time to act is today. As an experienced investor in apartments and hotels, I've seen firsthand the power of real estate to generate wealth and financial security. Even amidst uncertain times, real estate remains a solid investment option. Don't wait for affordability to improve - seize the moment and start building your real estate. How about you? What are your thoughts about this post from @Fluent.in.finance? Share it below. #realestateinvesting #affordability #housingprice #realestateinvestor

Investors and property owners are reporting stability in real estate values and rents. They expect CRE values and transaction volume to remain steady throughout the remainder of the year. #IndustrialRealEstate #Investing

📰 This week in real estate news: 📈 Investor lending surging 💼 Rents rising faster than wages 🏘️ Property nudging $11 trillion 🔥Auctions hot despite winter 🙂 Affordable & liveable locations Read the full article here: https://lnkd.in/gvaFyBUt #WealthStreet #AustralianPropertyMarket #PropertyInvestingAustralia

It's expected that commercial real estate (CRE) markets will improve in 2025 as economic conditions stabilize. While some CRE sectors like office space continue to face challenges, sectors such as multifamily and industrial real estate are showing resilience, supported by easing inflation pressures and potential rate cuts. https://lnkd.in/e4a_dqXY

Understanding the current real estate market requires a keen eye on broader economic trends. In a recent article we explored our analysis of the key factors shaping this year's economic landscape. High interest rates have led to market stagnation, particularly affecting multifamily properties with extended hold periods and reduced cash flow. However, residential real estate offers quicker turnarounds, making private lending an attractive option for investors. The market's future hinges on the Federal Reserve's actions on interest rates and the normalization of the yield curve. Stay informed and adapt your strategies to navigate these challenging times. Read the full article today: https://lnkd.in/d6gRSVDx