By Joshua Mann | The Business Journals (abridged)
For the commercial real estate sector, an interest-rate cut on (Sep. 17) would be nothing but positive, said Mark Rose, CEO of real estate firm Avison Young.
“This is a shot in the arm,” Rose said. “This is a confidence boost. Any time you can factor into your developments or your investments a lower cost of capital, it’s a positive.”
Recovery in the commercial real estate sector takes place in three arenas: fundamentals, financials and confidence, Rose said. Beleaguered by the economic effects of the Covid-19 pandemic, commercial real estate’s fundamentals have already been improving as return-to-office trends progress, and lower interest rates help on the financial side by increasing debt availability. Those two dynamics combined help to drive more confidence in the sector, Rose said.
“That translates into confidence, and that’s when people get back to work,” he said.
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