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PODCAST: Barings U.S. Head Of Real Estate Strategy On Rate Hikes And 'What Breaks In The Meantime'

Bisnow's audio series, Bisnow Reports, examines every facet of the international commercial real estate industry — from the murky future of retail and office to real estate’s reckoning with diversity to the effects of climate change on the built world, and so much more. You can subscribe on iTunes, Spotify and Amazon Music, or scroll down to listen in your browser.

Barings U.S. Head of Real Estate Research and Strategy Dags Chen

In this episode of Bisnow Reports, Barings U.S. Head of Real Estate Research and Strategy Dags Chen talks through the rapidly diminishing probability of a soft landing for the economy.

After the Federal Reserve raised rates by 75 basis points again last week — and signaled more hikes are coming — Chen said inflation is the key metric to watch for real estate players hoping to prepare their portfolios for a downturn.

He also broke down the impact on values, as well as similarities and dissimilarities between the current climate and the Great Financial Crisis in 2008. 

“It’s clear that monetary tightening is working, what the Fed is doing is working,” he said. “What we don’t know is what breaks in the meantime. Certainly, I do recognize, and I would even say the firm in general would recognize, that there is a need to establish price stability right now, and pain now is worth hopefully the result that would come about it.”