Ginger Chambless, JPMorgan Chase's Head of Research for Commercial Banking, commented on the commercial real estate (CRE) market. She suggested that higher-for-longer interest rates could maintain a challenging environment for the sector.
The specific impact will vary by local market and asset class. This variation depends on factors including population trends, employment, and supply and demand dynamics.
The commentary arrives amidst broader market uncertainty, including potential shifts in Federal Reserve policy.
JPMorgan Chase suggested real estate investors consider hedging against interest rate volatility. Investors must first assess their cash flow and the sensitivity of revenues and expenses to rate changes.