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The Fed’s rate hike should be music to the ears of the commercial real estate industry, a Cushman & Wakefield report says.
That might sound backwards—especially to REITs—but higher rates mean a strong economy. And a strong economy means more hiring, fewer vacancies and higher asking rates on rent.
“To a degree, it is something that should be celebrated,” the report says.
According to the report (and insiders), the US is seen as a safe haven in the uncertain global economy, meaning foreign cash is likely to keep driving prices higher.
Steve Witkoff, CEO of the Witkoff Group, recently noted he expects the US' safety to offset the strong US dollar in terms of bringing in overseas cash. [REJ]
