Trepp Releases First Part of Series Analyzing the Impact of Rising Interest Rates on Commercial Real Estate
NEW YORK (PRWEB)
April 04, 2022
Trepp, a leading provider of information, analytics, and technology solutions to the structured finance, commercial real estate (CRE), and banking markets, has released an in-depth analysis of the impact of recent interest rate increases on the CRE market. See the report here: https://www.trepp.com/interest-rates-commercial-real-estate-report-mar-2022-ri
On March 16th, 2022, the US Federal Reserve raised interest rates by a quarter-point, the first increase since 2018, and likely not the last increase this year. Interest rates, inflation, and commercial real estate price growth are positively correlated with each other, although some relationships are stronger than others. In a recent report, Trepp looked at the relationship between interest rates, inflation and investment returns, using a history of economic and financial data from Q3 1954 through Q4 2021.
“The Fed’s March 16th increase is not likely to have a tremendous effect on its own,” said Matt Anderson, Managing Director of Applied Data and Research at Trepp. “However, as the Fed follows through with more increases this year – and possibly beyond – investors and lenders should prepare for slower commercial real estate price growth.”
The Fed’s move to raise interest rates was widely expected and had been communicated to markets well in advance. The Fed also signaled that it expected to raise rates further this year. Interest rate increases make credit more expensive, which will likely have a disproportionate impact on capital-intensive industries, such as real estate.
Instantly access Trepp’s interest rates and commercial real estate analysis for the relationship between interest rates, inflation, and investment returns, including findings on correlations, recent CRE price performance, and Fed funds rate changes: https://www.trepp.com/interest -rates-commercial-real-estate-report-mar-2022-ri
About Trepp
Trepp, founded in 1979, is the leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiencies, information transparency, and investment performance. From his offices in New York, and London, Trepp serves his clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp subsidiary, Commercial Real Estate Direct, is a daily news source covering the commercial real estate capital markets. Trepp is wholly owned by Daily Mail and General Trust (DMGT).
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