(Investopedia) The Federal Reserve’s jumbo interest rate cut earlier this month has quickly rippled through financial markets, lifting nimble assets like stocks and gold to record highs. Its impact on the slow-moving commercial real estate market, however, remains unclear.
Approximately $1 trillion of commercial real estate (CRE) debt is coming due next year, nearly 8% of which is tied to the troubled office sector. While experts warn that rate cuts won’t save the office market from a painful reset, they also believe battered commercial real estate isn’t likely to tank the broader economy.
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