Where is Distress Risk in Today’s CRE Market
What The FED Meeting and Banking News Means For Investors
Federal Reserve Raises Rates But Changes Tune
The Federal Reserve once again raised the overnight rate by 25 bps at the May meeting, to 5.00%-5.25%
Language in The Fed’s press release suggested the Fed is entering a “wait-and-see” approach as opposed to expecting additional hikes
Regional Banks Still Face Risks As Major Sale Occurs
After customers withdrew $100B in Q1, First Republic Bank was seized by regulators and auctioned to JPMorgan Chase
61% of First Republic’s lending was in SF housing, 13% was multifamily and 6% was other CRE
Rate Stability To Aid Lenders and CRE Investors
If the Fed stops raising rates, lenders and banks can begin to stabilize their lending standards
Long-term demand drivers remain sound for the majority of CRE types
*Through May 04
Sources: Marcus & Millichap Research Services, Federal Reserve, CME Group