David Scherer of Origin Investments Origin Investments’ David Scherer sees EU uncertainty boosting US deal flow.

CHICAGO—Last week’s Brexit vote sent tremors through the world economy, and people around the globe have been struggling to understand its implications. But even though some worry Britain will plunge into a recession, and perhaps pull other countries down as well, the long-term effect on commercial real estate, especially in the US, remains unclear. However, UK voters did at least bring clarity to some issues.          

“It’s going to extend the era of low-interest rates even longer,” David Scherer, a founder and principal of Chicago-based Origin Investments, tells GlobeSt.com. And that’s not just a personal opinion. “The market now estimates that LIBOR will stay low for an extended period.” And traders now believe with a high degree of certainty that the Federal Reserve won’t raise interest rates before December, and even then there is only a roughly 15% chance of a rate hike.

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Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.

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