After a full year of surging price inflation, the Federal Reserve finally raised its benchmark rate from 0 percent by a menial 25 basis points. With the Fed’s plan to raise rates another six times this year, many investors question if the economy can handle the projected 1.75 percent interest rate by year’s end. Due to America’s rapidly rising debt levels, the economy has destabilized under lower levels of rate-hike cycles in the past. The Federal Funds Rate topped out at 6.5 percent in 2000, 5.3 percent in 2007, and only 2.4 percent in 2019. On its current trajectory, rates may only make it to just over 1 percent before the economy begins to unravel and the Fed is forced to reverse course. Unfortunately, price inflation will likely be unbothered by 1 percent interest rates. When rates peaked in 2019, industrial real estate transactions immediately dropped to three-year lows. Given how sensitive commercial real estate is to interest rates, landlords may only have a short window before the Fed’s small rate hikes significantly impact the industrial market.

I N D U S T R I A L   N E W S

Federal Reserve Raises Interest Rate 25 Basis Points, With 6 More
Increases On Tap This Year
Bisnow – March 16, 2022
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Globe St. – March 17, 2022
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Stagflation Concerns Rise, Real Estate Beware
Bisnow – March 16, 2022
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Why Industrial Development Costs Have Continued To Spike
WealthManagement.com – March 17, 2022
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These Strawberries Were Grown In A New Jersey Warehouse — And They May
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CNBC – March 15, 2022
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R E G I O N A L   N E W S

Dallas Topped US Markets For New Investor Entrants
Globe St. – March 8, 2022
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Exodus Of Corporate HQ From California Keeps Growing
Globe St. – March 7, 2022
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Lovett Industrial, Clarion Launch 3.1 MSF Project
Commercial Property Executive – March 10, 2022
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Midwest Industrial Funds Under Construction On
400,000-Square-Foot Spec Building
REjournals – March 3, 2022
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Constellation Real Estate Partners Acquire 33 Acres In
Houston For Industrial Development
Connect CRE – March 16, 2022
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