Gray Capital

Federal Reserve: 3 Rate Cuts in 2024 On the heels of a CPI report showing inflation on the slow decline, Federal Reserve Chairman Jerome Powell announced that the FOMC would keep the federal funds rate at its current level, with 3 rate cuts expected in 2024. Stock markets reacted with the typical enthusiasm associated with…

Chill Sets in for Multifamily Borrowers With rent growth reports showing near-zero percent rent growth for the year, multifamily borrowers, investors, and operators face continuing challenges that will require active solutions rather than passively waiting for a more favorable interest rate environment. With the year-end approaching, apartment operators and asset managers will have a full…

Light at the End of the Tunnel Gets Brighter for Multifamily Continued updates on housing starts and permits shows multifamily construction starts down sharply even as single family construction continues to grow. The seasonal cooldown in rent growth is less pronounced than last year but remains a challenge for owners and operators continuing to deal…

Market Adjustment to “Higher for Longer” With forecasts of greater supply and continued pressure from high interest rates, predictions that we are in the early moments of CRE valuation adjustment are gaining prominence, but expanded interest in non-bank lending is helping multifamily borrowers looking to resolve challenges related to increased borrowing costs. Multifamily, the Nation,…

Paradigm Shift for Multifamily and CRE Stock markets rallied after this week’s CPI print showed lower inflation, but the path to lower interest rates may not be as quick or straightforward as some would hope. With continued low CRE property sales and a narrow cap rate-interest rate spread, investors looking for investment opportunities are turning…

With Rate Hike Pause, Will Investors Buy More CRE? With recent data showing that multifamily loan originations are down 50% from last year (and down by 40% compared to pre-pandemic 2019 numbers), there is a growing discussion about the changing state of multifamily lending. The Fed’s rate hike pause last week was followed by some…

With Rate Hike Pause, Will Investors Buy More CRE? Despite several recent indicators of persistent inflation and greater economic activity, the Federal Reserve did not increase (or decrease) the federal funds rate this month. For CRE investors waiting to buy (or sell) properties, a rate hike pause may not be enough to encourage their re-entry…

Fed Says CRE Prices Are Still Too High Investors continuing to grapple with slow-moving CRE pricing trends are well in line with the results of the Federal Reserve’s recent survey on financial stability, which noted that commercial real estate valuations have not fallen at a rate commensurate with the increase in interest rates. While apartment…

Loan Maturities Update: Is Distress Around the Corner? Reports of persistently-high expenses for commercial real estate operators, extended periods of higher interest rates, and lower rent growth have compounded the potential for distress linked to the wave of multifamily loan maturities due in Q4 of this year. Solid, long-term fundamentals and robust housing demand continue…

Fed’s 2024 Projection: Funds Rate at 5.1% by End of Year  The Federal Reserve decided this week to maintain the current Federal funds rate without an increase (or decrease), but their updated economic projections suggest that the Fed is more driven to sustain these elevated rates through 2024, increasing their end-of-year 2024 projection from 4.6%…