It's no secret that commercial real estate has struggled in recent years. The industry has yet to recover from the effects of the pandemic, which forced more professionals to work from home and consumers to shop and dine at home. As a result, office vacancy rates have hit a 30-year high of about 18% in 2023, and businesses large and small have drastically cut space to adapt to new norms of remote and hybrid work. Some even exited leases early. Commercial real estate bargain hunters are currently snapping up space at steep discounts of up to 70%, according to multiple…
Author: Private Lending Agent
Our picks for the best unsecured business loansBest for long-term unsecured business loansBank of America’s unsecured business loan has competitive rates and loan terms that go up to 60 months, making it a good option for larger purchases that can be paid off over a long term. It’s best for established businesses that have strong credit and want to avoid pledging high-value assets as collateral on a business loan. Certain benefits — such as the ability to apply online — are available to those who already hold accounts with Bank of America.Can be a good option if:You have strong credit…
Kiplinger's economic outlook is written by Kiplinger Letter staff each week and isn't available anywhere else. Click here to get your free copy of the Kiplinger Letter or subscribe for the latest trends and forecasts from the experienced Kiplinger Letter team.The inflation progress shown in the May and June Consumer Price Reports should keep the 10-year Treasury yield in the upper half of the 4% to 4.5% trading range. Federal Reserve Chairman Jerome Powell acknowledged the progress shown in the May price report but made it clear that the Federal Open Market Committee is not yet convinced that progress toward…
CalPERS is prepared to take on more risk. The Sacramento-based pension fund, the nation's largest with $487 billion in assets under management, has built a real estate portfolio with defensive core characteristics that investors credit with protecting it from the real estate downturn. The fund's core portfolio was worth $45.2 billion as of March 31, representing nearly 88% of the fund's real estate holdings, according to a memo from an investment committee meeting this week. But the pension fund, which serves 2 million California public employees, is looking to expand non-core investments in its real estate portfolio. As of March…
Before commencing the construction of a commercial building, the biggest and initial concerns are always the construction costs per square foot. Commercial buildings are used in different sectors such as education, health, and retail. Dependent on usage and other factors such as location, the costs can vary greatly. The area’s zoning and geography also affect the construction costs per square foot, whereby materials are more expensive in earthquake-prone regions. Controlling these costs helps owners finish their projects on budget and allows contractors to protect profit margins. This article will discuss the average construction costs per square foot and have derived…
The Federal Reserve decided to keep interest rates unchanged on Wednesday, prolonging its aggressive fight against inflation even though the latest data released hours earlier showed price growth had slowed slightly.Price growth slowed last month, but inflation progress has remained gradual since late last year, according to data from the Bureau of Labor Statistics. Meanwhile, the central bank said Wednesday it expects inflation to remain higher for longer than previously expected.The Fed reversed its previous forecast of three rate cuts this year and said it now expects one cut in 2024 instead.”The Committee believes that it would not be appropriate…
(Bloomberg) — Blackstone Inc.’s plans to sell $1.275 billion in bonds backed by commercial real estate debt are now on hold as bond issuance continues to surge.Most read articles on BloombergA group of banks including Morgan Stanley and Bank of America Corp. were selling a single-asset, single-borrower bond backed by mortgage debt tied to more than 60 industrial properties across 13 states.But the sponsors decided to halt the sales process because spreads on the bond had become too wide, said the people, who asked not to be identified discussing the details as they are private.The deal was an opportunistic refinancing…
Updated on June 12th, 2024 by Bob Ciura Investors looking to generate higher income levels from their investment portfolios should look at Real Estate Investment Trusts or REITs. These are companies that own real estate properties and lease them to tenants or invest in real estate backed loans, both of which generate a steady stream of income. The bulk of their income is then passed on to shareholders through dividends. You can see all 200+ REITs here. You can download our full list of REITs, along with important metrics such as dividend yields and market capitalizations, by clicking on the…
Other U.S. interest rate determination methodsCredit cards and savings accounts are most vulnerable to fluctuations in the federal funds rate, followed by personal loans, auto loans, and mortgages. Interest rates on all of these products depend on other important factors, such as your credit score.Because Federal Reserve rates are short-term interest rates, fluctuations in them have a strong impact on short-term lending products and tend to have a greater impact on floating rate products than on fixed rate products.Here we explain how banks set interest rates on credit cards, loans, and savings accounts, and how changes in the federal funds…
The Federal Reserve has made significant progress in tackling inflation, with inflation falling 0.1 percentage point from April to 3.3% in May. Following this slight decline, the Fed decided to keep its target interest rate in the 5.25% to 5.50% range at its June 2024 meeting. The Federal Open Market Committee, the Fed's interest rate-setting body, said in a press release about the rate decision that it “judges that risks to the achievement of our employment and inflation objectives have moved more balanced over the past year,” but that “the economic outlook remains uncertain, and the Committee remains very vigilant…