Reports that the Federal Reserve Bank may be considering a significant interest rate hike in response to a perceived bubble in the commercial real estate market have sparked concern among some analysts. Builders and construction firms across the U.S., however, are expressing cautious optimism and continuing to expand their projects to deliver housing solutions, office space and other commercial real estate solutions for their clients.
One issue that may be drawing attention from administrators at the Federal Reserve is the elevated vacancy rate in many newly built urban high-rise apartment buildings. Market analysts are already predicting an increase in commercial delinquencies of more than two percent for 2017. This has prompted a tighter hold on the purse strings by lenders and the Federal Reserve alike.
Some major developers have already pulled out of potentially lucrative deals to prevent these predicted losses. In most parts of the country, however, an uptick in demand for commercial real estate is continuing to bolster the economic recovery and is providing added jobs and profitability for savvy builders.
Even if the Federal Reserve does opt to increase mortgage interest rates, most builders will see minimal change in their business model and will likely experienced increased demand for their services in the current economic environment. Acuity National Real Estate Solutions can help with the most advanced solutions for managing lending arrangements, investments, buyers, sellers and brokers in the modern real estate industry.
To learn more about the full line of commercial real estate services offered by Acuity National Real Estate Solutions, visit us online or give us a call at 502-238-7500. We are here to serve you!