Tightening monetary policy highlights utility of rate swaps and caps. Commercial real estate investors have long had multiple avenues for hedging against rising interest rates. The Federal Reserve’s commitment to raising interest rates, renewed by higher-than-anticipated CPI inflation in May, has brought these options back to the forefront of many borrowers’ minds. For investors with floating rate debt, there are two prominent options to hedge against rate climbs: an interest rate swap and cap. A… Read More

Retail sector approaches a junction. Improvements in grocery and dining-related spending were brightspots in May, when core retail sales advanced marginally against a backdrop of high inflation. The recent gains recorded across the two retail segments occurred alongside declines in home-based purchasing categories, including furniture, electronics and online spending. This activity points to a broader shift in consumer behavior away from the consumption of home goods and toward necessities and some social experiences. This adjustment… Read More

Job growth overcomes inflation concerns. Total employment increased by 390,000 personnel in May, consistent with April hiring, while the unemployment rate held at a historically low 3.6 percent for a third consecutive month. Continued job creation is an important baluster amid economic turbulence stemming from elevated inflation and rising interest rates. June will likely bring the year’s third rate hike from the Federal Reserve, as well as marking the start of quantitative tightening. Higher interest… Read More

Bloomberg Features Marcus & Millichap CEO Hessam Nadji The Forces Driving Real Estate And the Role the Fed Will Continue to Play Is another Housing Bubble in the making? What’s different this time? The property types poised for gains and the forces driving them. How rising interest rates will affect the broader real estate market.

Fox Business Features Marcus & Millichap CEO Hessam Nadji The Rapidly Evolving Real Estate Climate The Forces In Play And Implications For Investors How the rapidly transforming economy is reshaping the CRE outlook The property types poised for growth and which face headwinds What it will take to change the trajectory of housing costs

Marcus & Millichap’s President and CEO Hessam Nadji joins Fox Business: Will Rising Interest Rates Stall Real Estate? Investors Still See Opportunity Despite Rate Surge Real estate opportunities in the current rising interest rate climate Why baby boomers are targeting select real estate sectors The areas of the country delivering investment momentum

CNBC Features Marcus & Millichap CEO Hessam Nadji Office Sector Faces Dual Track Recovery; The Properties That Best Hedge Inflation Real estate and inflation: The best property types to hedge inflation Urban vs Suburban recovery trends Office market rankings by vacancy

Tech hiring reiterates decentralization. Over the past decade, the tech industry expanded beyond the traditional hubs of the Bay Area, Seattle, Los Angeles and New York City into new frontiers in Atlanta, Austin, Denver and Orlando. Firms sought out new talent and planned expansions in lower-cost areas. Despite this, nearly 50 percent of new tech job openings from 2015 to 2019 were still located in high-profile tech metros. During the health crisis, the decentralization of… Read More

Hiring continues amid low unemployment. Employers added 428,000 new jobs in April, on par with the previous month. While the employment base remains about 1.2 million positions short of the February 2020 headcount, multiple signs point to a recovered labor market. Last month 5.9 million people were unemployed, only 200,000 above the pre-pandemic mark. The underemployment rate also fell to 7.0 percent in April, matching the February 2020 level. This measure takes into account part-time workers… Read More

Fed continues along established stratagem to combat inflation. On May 4 the Federal Reserve raised the Federal Funds rate by 50 basis points in the second of seven planned rate hikes for the year. Now at a target range between 0.75 percent and 1.00 percent, the effective overnight lending rate is expected to climb to the 2 percent to 3 percent zone before the start of 2023 if the Fed continues with this strategy. Numerous forces… Read More