{"id":1004331680,"date":"2019-06-19T11:25:54","date_gmt":"2019-06-19T19:25:54","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004331680"},"modified":"2020-03-31T03:43:59","modified_gmt":"2020-03-31T11:43:59","slug":"lower-rates-raise-all-boats","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/lower-rates-raise-all-boats\/","title":{"rendered":"Lower Rates Raise All Boats"},"content":{"rendered":"
\"\"

Jonathan W. Hipp  Image courtesy of Calkain Cos.<\/em><\/p><\/div>\n

There\u2019s an old saying about asking four experts their opinion and getting five different answers. That old saw could be applied to economists trying to get ahead of interest-rate activity as we swing into the second half of 2019.<\/p>\n

Do a simple Google search on interest rates to see this truth in action. Unfortunately, you\u2019ll need a sharp machete to cut through the political wrangling masquerading as guidance.<\/p>\n

As you might recall, it wasn\u2019t all that many weeks ago that those same pundits were wringing their hands over a probable increase, or series of increases, in the interest-rate picture. Forgetting for a moment what might\u2015or might not\u2015lie ahead, and living in the moment, the 10-year Treasury is now at a near-record low of 2.06 percent\u2015it\u2019s lowest since September of 2017.<\/p>\n

This of course bodes very well for real estate generally, but also for the net lease market, which is our reason for being. Large deals are capital magnets. But smaller deals often have trouble finding the funds to push them over the finish line. Lower rates raise all the boats, making it easier for everyone to belly up to the bar. In fact, we expect to see a slight surge in activity as transactions that had difficulty penciling out just a few weeks ago now find their paths to completion cleared. We also expect to see a jump in lenders offering interest-rate-only loans\u2015more good news, especially for those smaller deals.<\/p>\n

This is more than wishful thinking. In fact, a sizable deal we\u2019re working on with a life company, drew an actually quoted rate in the high 3s just a few days ago.<\/p>\n

This optimistic turn might well be fueled further if tariffs being imposed by the current administration do in fact threaten the stability of the economy, as some pundits have suggested. In that case, if I were a betting man, I would say there\u2019s a high probability that we might see a further compensatory drop in rates by the end of the year.<\/p>\n

Yes, this might seem like good news stemming from bad, but I have faith in the strength of the economy and the ability of those with their hands on the tiller to not sink the ship in the name of politics. In the meantime, we\u2019ll reap the benefits.<\/p>\n

So I am going out on a limb here and foreseeing a continuation of a strong interest-rate-driven market through the end of the year.<\/p>\n

Essentially I am doing the pundits one better. How? Well, you know what else they say about economists. . . They\u2019ll give you a direction or a time frame but never both.<\/p>\n

I\u2019ve given you both. That\u2019s the story. And I\u2019m sticking to it.<\/p>\n

Jonathan W. Hipp is founder, president & CEO of Calkain Cos.<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The Federal Reserve voted not to drop the benchmark rate at its June meeting, but the commercial real estate market will still be largely interest-rate driven for the remainder of the year, says Calkain’s Jonathan Hipp. <\/p>\n","protected":false},"author":1126,"featured_media":1004331737,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21684],"tags":[33054],"class_list":["post-1004331680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-viewpoint","tag-calkain-companies"],"acf":[],"yoast_head":"\nLower Rates Raise All Boats - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/lower-rates-raise-all-boats\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lower Rates Raise All Boats\" \/>\n<meta property=\"og:description\" content=\"The Federal Reserve voted not to drop the benchmark rate at its June meeting, but the commercial real estate market will still be largely interest-rate driven for the remainder of the year, says Calkain's Jonathan Hipp.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/lower-rates-raise-all-boats\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-19T19:25:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-03-31T11:43:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/06\/Hipp-Jon-2016.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jonathan Hipp\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/lower-rates-raise-all-boats\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/lower-rates-raise-all-boats\\\/\"},\"author\":{\"name\":\"Jonathan Hipp\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/25d998ea8b694fdb939fbcbfc1c426d5\"},\"headline\":\"Lower Rates Raise All Boats\",\"datePublished\":\"2019-06-19T19:25:54+00:00\",\"dateModified\":\"2020-03-31T11:43:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/lower-rates-raise-all-boats\\\/\"},\"wordCount\":493,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/lower-rates-raise-all-boats\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2019\\\/06\\\/Hipp-Jon-2016.jpg\",\"keywords\":[\"Calkain Companies\"],\"articleSection\":[\"Viewpoint\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/lower-rates-raise-all-boats\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/lower-rates-raise-all-boats\\\/\",\"name\":\"Lower Rates Raise All Boats - 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