In September, the Fed cut rates by half a percent, the first drop in rates since March of 2020.

Another half percent drop is expected by the end of the calendar year, and likely a full percent over 2025. As interest rates decrease, cap rates generally fall as well; lower interest rates will also mean increases in liquidity, plus refinancing opportunities for borrowers near the end of their leases. In the Reno market, commercial construction is booming in industrial, retail, and multifamily sectors, but may outpace demand; Las Vegas is seeing a contraction in hospitality availability for the first time in recent years as demolitions and closures outpace new development projects.

In today’s quickly changing environment, we remain ready to assist you with your commercial real estate valuation needs at any time.