Commercial Property Executive has a new monthly reader poll! We want to know your thoughts on how successful the U.S. Federal Reserve’s policies have been, particularly their raising of interest rates. Presently, the Federal Funds rate of 5.25 to 5.5 percent is at its highest in 22 years.
At a press conference following the most recent meeting of the Federal Open Markets Committee, Chair Jerome Powell hinted at another rate hike before the year’s end.
Despite the Fed’s success in reducing inflation nearly threefold over the last 18 months and an overall healthy economy, reactions by commercial real estate industry experts to the moves have been mixed. Some see the rate hikes as necessary to combat the erosion of purchasing power for consumers, but are dismayed by its effects on dealmaking terms, property values and transaction volumes across commercial asset classes. For this poll, we want to know if you think that the policies have been successful, and what their effects might be.
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In the previous poll, we asked about the extent to which readers are considering or undertaking conversions of office space to residential use. Due to many of the inherent difficulties of completing such projects, owed to both technical limitations and a lack of government assistance, 66 percent of respondents answered that the conversions are not feasible for them. At the same time, a quarter of respondents stated that they have office properties currently undergoing conversions, while 13 percent stated that they are seriously considering them.
Click here to see CPE’s latest poll, and the results of previous surveys.