When the Federal Reserve first announced a rise in the short-term interest rate in June, the expectations were that real estate activity would level off, but that hasn't happened. There is still a lot of capital chasing real estate. "The four quarter looks as busy as 1998," Gabriel tells GlobeSt.com, adding that company wide the volume could be up as much as 50%.
"This will have a modest impact on real estate--insignificant at best," adds Jeffrey B. Steiner, partner, Brown Raysman Millstein Felder & Steiner, which represents Wall Street investment banks and institutional lenders in commercial financing and restructuring matters. "We're seeing strong leasing and a stronger economy."
Over the past several years, Brown Raysman has closed in excess of $5 billion of loans for investment banks, commercial banks, insurance companies and pension funds. Steiner also anticipates a productive fourth quarter and is currently working on three transactions that are each in the billion-dollar range.
In June, the Federal Reserve raised short-term interest rates by a quarter point for the first time in four years. The previous rate of 1% was the lowest level in more than 40 years.
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