The Fed’s rate hike from 0.50% to 0.75% reiterates the positive economic outlook for 2017 that could accelerate monetary policy in the coming year, according to Marcus & Millichap. Rising interest rates will remain a significant factor in the commercial real estate market that could force asset repricing, widen the gap in expectations and slow transaction velocity as investors reassess prospective yields. While many sellers are still trying to achieve peak pricing, buyers are re-evaluating acquisition criteria in a rapidly moving capital environment. The performance outlook remains positive, but modest upward pressure on cap rates is emerging, says the Marcus report.—Lisa Brown