According to Michael Wetnight of CPI’s Financial Group at Commercial Properties, Inc./CORFAC International, “it’s time to recalibrate expectations and focus on the strong fundamentals right in front of us.”

With a newly appointed Fed Chair, Kevin Warsh, taking the reins, the economic indicators point toward stability rather than immediate relief.

The Data: Unemployment is holding steady at 4.3%, but trailing 12-month inflation has ticked up from 3.3% to 3.8%—still notably above the Fed’s 2.0% target.

The Outlook: Expect Chair Warsh to hold the prime lending rate steady through the summer. If indicators continue their current trajectory, we could see a 25-basis point hike by Q3.

The Capital Markets: Keep a close eye on the 5-Year Treasury, which has climbed from 3.86% in January to 4.29% today.

The Silver Lining for Commercial Real Estate?
“Mid-to-low 6% interest rates are historically very good. In a high-demand market like Arizona, serious investors and occupiers aren’t letting the cost of capital stall their growth. They recognize that quality, available inventory is scarce. If they find the right space to scale their business, they are moving forward—regardless of the rate,” stated Michael Wetnight.

While geopolitical uncertainty (such as the ongoing conflicts in Iran) has kept some capital cautious, the underlying demand is coiled like a spring. Once we find global clarity, expect a major, overnight boom in activity.

The Takeaway: The smart money isn’t waiting for a perfect environment; it’s navigating the one we have by securing quality assets today.

Reach out to Michael Wetnight or the CPI team at www.cpiaz.com to see how they will help optimize your portfolio in this shifting market.

#CommercialRealEstate #CRE #PhoenixRealEstate #FederalReserve #KevinWarsh #Financial #CORFAC #PropertyInvestment #MarketInsights #Arizona #Industrial #Office #Retail #Medical #Multifamily #Land #CPI