The Best Ever CRE Show JF 4091: Cap Rates, Debt Costs and the 2025 Investment Sweet Spot with John Chang
Nov 16, 2025
John Chang delves into the dynamics behind recent economic shifts, highlighting how a temporary government funding deal affects GDP and consumer confidence. He discusses the fluctuating interest rate landscape and improving capital availability for investors. A notable focus is on current cap rates, which present a potentially rare investment opportunity in commercial real estate. Chang contrasts the oversupply in Sun Belt markets with resilience in others, while identifying promising sectors like self-storage and senior housing.
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Field Meetings In New York Shaped His Views
- John Chang spent nearly a week in New York meeting clients and gathering market color.
- He uses those conversations to inform his outlook and share conclusions on this episode.
Temporary Funding Extends Economic Uncertainty
- The government funding deal is temporary and extends uncertainty, which suppresses hiring and consumer spending.
- John Chang warns this fuels caution and could reduce short-term GDP growth materially.
Rate Cuts Are A Coin Flip, Ten-Year Stabilizes Debt
- Fed rate cuts are uncertain; December was a coin flip after Powell cooled expectations.
- The 10-year Treasury sitting around 4% has helped stabilize commercial real estate debt availability.