Understand the influence of interest rates on property values, and how they affect mortgage costs and investment capital to ...
Three years ago—when the Fed began raising interest rates to help stem high inflation—a valuation gap emerged between public and private real estate as evidenced by the implied cap rate from Nareit’s ...
XLRE holds data center REITs including Equinix and Digital Realty that benefit from AI infrastructure spending. Declining interest rates compress cap rates and raise property valuations through lower ...
Conventional wisdom has long said: where interest rates go, cap rates soon follow. In other words, when the cost of capital is high, so too is the ratio of a property’s net operating income to its ...
The Federal Reserve has begun cutting rates. Borrowing costs should be falling. Commercial real estate should be breathing a sigh of relief. Yet the sector remains locked in a frustrating stalemate, ...
The commercial real estate market may face the prospect of higher borrowing costs even as President Donald Trump places downward pressure on the Federal Reserve, leading lenders stressed at the 58th ...
The Morningstar US Real Estate Index declined 2.2% over the trailing 12 months, significantly underperforming the 17.5% gain recorded by the broader US equity market during the same period. The sector ...