What the December Fed Meeting Means for CRE in 2023
The December Federal Reserve meeting is an important event for commercial real estate professionals and investors to keep an eye on, as it can provide insights into the direction of monetary policy and, by extension, the overall economic outlook for the coming year. In this blog post, we'll take a closer look at what the December Federal Reserve meeting means for commercial real estate in 2023 and how you can stay informed about the latest developments in this area.
One of the main things to watch out for at the December Federal Reserve meeting is the Federal Open Market Committee's (FOMC) statement on monetary policy. This statement is released after each meeting and provides an overview of the FOMC's views on the current economic situation, as well as its plans for future interest rate changes.
If the FOMC indicates that it plans to keep interest rates low or even lower them further, this could be good news for commercial real estate professionals and
investors. Low-interest rates make it easier for businesses to secure financing for new projects, which can lead to increased demand for commercial real estate. Additionally, low-interest rates may also encourage companies to invest more in their operations, which could lead to increased demand for office and industrial space.
Most Likely Scenario……
On the other hand, if the FOMC signals that it plans to raise interest rates in the coming year, this could have a negative impact on commercial real estate. Higher interest rates make it more expensive for businesses to borrow money, which could lead to reduced demand for commercial real estate. Higher interest rates may also
lead to a slowdown in economic growth, further dampening demand for commercial real estate.
Initial indication is that the FOMC will continue to raise rates to slow down the economy. This will ultimately lead to further corporate contraction and layoffs. The FOMC is keeping a careful eye on total employment and will continue to raise rates until the strong labor market exists. Many economists believe that
corporate contraction will continue for the foreseeable future, possible 2-3 quarters into 2023.
It's important to note that the FOMC's statement is just one factor that can impact commercial real estate. Other economic indicators, such as employment, GDP growth, and inflation, can also have an effect on the commercial real estate market.
In conclusion, the December Federal Reserve meeting is an important event for commercial real estate professionals to pay attention to, as it can provide insights into the direction of monetary policy and the overall economic outlook for the coming year. By staying informed and keeping an eye on key economic indicators, you can make informed decisions about your business and position yourself for success in the commercial real estate market in 2023.
Aegis Realty Partners Real Estate Investment specialists are well-positioned to advise our investors to seek out new real estate acquisitions as well as assist real estate investors when it comes to selling their properties and can advise investors on some of the most attractive financing options for their acquisition or refinancing needs.
Aegis Realty Partners Property Management services manage thousands of square feet of commercial property and over 1000 residential units, and there isn't a type of property that we are not familiar with. If you or you know of any investor that needs assistance in choosing a property to invest in or manage in we are willing to discuss our professional investment brokerage and/or management services. We are in constant communication with investors actively looking to buy, sell, and lease properties.