The TreppWire Podcast: A Commercial Real Estate Show 337. Wait-and-See or Cut-and-Run? The Fed's Dilemma, Political Impacts on CRE, Office Distress Opportunities & More
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Jun 27, 2025 Dive into the pressing dilemmas faced by the Federal Reserve regarding interest rates and their ripple effects on commercial real estate. Discover intriguing opportunities in distressed office assets and potential transformations from office to residential spaces, particularly in NYC. The discussion also covers the evolving retail landscape amid store closures and changing consumer preferences. Plus, insights into the impact of economic pressures and AI’s role in real estate analysis keep the conversation forward-thinking and relevant.
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Fed's Rate Cut Dilemma
- The Fed is cautious about cutting rates too early to avoid reigniting inflation.
- Market odds for a 25 basis point cut in July and September have noticeably increased recently.
Home Builders' Margin Squeeze
- Home builders face squeezed margins due to expensive land and weak demand.
- High costs and inflationary pressures make new construction very challenging.
NYC Rent Control Risks
- Proposals to expand rent controls in NYC could increase delinquency and reduce lender interest.
- Such policies risk pushing wealthy businesses out of NYC, negatively impacting the real estate market.