Don’t expect the Fed’s recent rate cut to shake up the market too much. Interest rates have remained low for the last several years and with compressed cap rates throughout California and the nation, investors won’t likely rush into new transaction simply due to the rate cut. At the moment, fundamentals are driving investment decisions more than rates.
“Fundamentals are front and center right now,” David Pascale, SVP of George Smith Partners, tells GlobeSt.com. “Because cap rates are so low, a lot of deals are dependent on increasing income and blue-skies in the future. A project has to pencil on its own, and investors aren’t going to jump into a transaction because rates are low. Rates have been low for a long time.”
Read the full article: Fundamentals Supersede Fed’s Interest Rate Cut (GlobeSt.com)
