market view

The Federal Reserve’s decision to keep the target rate at 4.25-4.5% could keep a lid on commercial real estate prices.

The firm’s chief economist Ryan Severino says retail will exceed investor expectations.

Benefit Street Partners, ORIX USA and Harbor Group International share their outlook for interest rates, borrower headwinds and mortgage real estate investment trusts. 

Chair Jerome Powell says the Federal Reserve will likely cut rates twice in 2025, significantly less than the four reductions expected prior to its meeting.

Goldman Sachs’ newly originated loan on the retail component of 680 Madison Avenue in New York demonstrates the changing opportunity set for the sector.

The Chicago-based investment manager and alternative lender believes these properties could be part of the long-term solution to the US housing crisis.

About $4.2bn of near-term hotel maturities are facing refinancing difficulties in today’s higher for longer environment.

Ahead of the Federal Reserve’s June 11 meeting, hopes for rate cuts have plummeted from as many as three to potentially none.

Toby Cobb, co-founder and managing partner, also sees a herd mentality emerging around five-year, floating-rate loans. 

Borrowers and lenders continue to be held back by higher interest rates and a lack of clarity on valuations, notes an advisory executive.