The recent rate hike by the Fed will “ultimately benefit” commercial real estate on a long-term basis, according to a pair of industry experts. 

“The fundamental intent is to reduce the risk that elevated inflation will become entrenched, forcing the Fed to hike rates more aggressively in the future and potentially sparking a recession, which would clearly be a worst outcome for many sectors including property,” Cushman & Wakefield economists Rebecca Rockey and James Bohnaker write in a new analysis. “The gradual move now by the Fed is a necessary step to help achieve the second part of its dual mandate: achieving price stability, a precondition for a sustainable healthy labor market. Ultimately the confluence of these two objectives being achieved will help to sustain the CRE expansion.”

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