AmiSight 9/29: Rate Cut Could Boost Commercial-Property Market
- Ami Kassar
- Sep 29
- 1 min read
Although the Federal Reserve’s recent rate cut is unlikely to help many Americans soon buy a home, it could lead to more property sales and lending, reversing yearslong slide.
The Wall Street Journal reports that a new interest-rate easing cycle could help prop up building values, leading to more property sales and more lending. Analysts and real-estate professionals say it could also make some construction projects, such as conversions of office buildings to apartments, more likely to move forward.
However, a weakening economy and rising inflation could undercut whatever boost commercial real estate gets from lower rates. Factors include the slowdown of hiring and wage growth and tighter immigration policies which could lead to labor shortages.
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