The Best Ever CRE Show JF 3895: Interest Rates, Apartment Demand, and Operational Excellence
May 4, 2025
The podcast dives into insights from a meeting with top commercial real estate investors, addressing rising stagflation risks and their implications for apartment demand. Despite economic uncertainties, overall investor sentiment remains positive, with many planning to purchase in 2025. A key focus is the importance of strong operations, as experienced investors are expected to thrive while less seasoned counterparts may struggle. The conversation also highlights the need for adaptability in response to fluctuating interest rates and economic challenges.
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Unique Stagflation Dynamics
- Stagflation risk arises from evolving tariffs and trade policies, unlike the 70s oil crisis.
- This cycle is less severe economically but inflation could stay elevated around 4-7%.
Fed Focuses on Inflation Control
- The Fed likely keeps interest rates high to control inflation despite recession risks.
- Markets expect cuts, but Fed Chair Powell signals rates will stay elevated until policy clarity.
Be Ready to Lock Rates
- Prepare your deals and lenders in advance to quickly lock in favorable rates.
- Being ready allows you to act if interest rates unexpectedly drop.