Many people in CRE want interest rates to return to their low pre-pandemic levels. That might be sustainable, or it might not be. The answer likely depends on an economic concept called R-Star. But it's tricky, not something that can be directly observed, and a value that experts disagree over.

R-Star — also called the neutral or natural interest rate — is the short-term interest rate that enables full employment and maximum output with stable inflation. Note two things.

One, full employment doesn't mean zero unemployment. Rather, it is the maximum number of people employed to create the goods and services that match demand using the necessary resources.

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