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March 21, 2024

After Tense Tax Battle, Experts Are Optimistic CRE Can Mend Fences With Brandon Johnson. But Is He?

Now that a contentious battle between the city and the commercial real estate industry over a proposed real estate transfer tax that voters appeared to reject is over, a question remains: What will the relationship between the parties look like going forward?

After Tense Tax Battle, Experts Are Optimistic CRE Can Mend Fences With Brandon Johnson. But Is He?

The failed tax was voters' first rebuke of Mayor Brandon Johnson's progressive policies since he took office last May, and large CRE interests poured hundreds of thousands of dollars into mailers and ads to ensure the ballot measure wouldn't pass Tuesday.While some in CRE hope a rift that…

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Multifamily Loan Losses Spike As Debt From 2021 Peak Comes Due

While much of the concern over commercial real estate distress has focused on the office market, a new report shows multifamily loans are the ones that saw the biggest spike in losses last year. 

Multifamily Loan Losses Spike As Debt From 2021 Peak Comes Due

The loss rate for apartment loans last year reached 16%, up from around 5% in the prior two years, according to MSCI’s U.S. Capital Trends report released Wednesday.The rate of losses is still less than half of what it was during 2009, when lenders were taking losses on 37% of apartment loans, but MSCI…

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Federal Reserve Still Sees 3 Rate Cuts In 2024 But Holds Rates Steady For Now

Federal Reserve Still Sees 3 Rate Cuts In 2024 But Holds Rates Steady For Now  

The Federal Open Market Committee on Wednesday didn't budge on interest rates, noting that it “does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” the central bank said in a statement.

Nine FOMC members said they believe three interest rate cuts this year are appropriate, in line with what the committee indicated in December. Five other members indicated that two cuts would be the correct course, according to materials released by the Federal Reserve Wednesday

Fed Chair Jerome Powell expanded on the likelihood of rate cuts with a chance of further hesitation during a press conference Wednesday.  “We believe that our policy rate is likely at its peak for this tightening cycle and that if the economy evolves broadly as expected, it will likely be…

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In Case You Missed It...

Chicago Voters Appear To Reject New Real Estate Transfer Tax, CRE Breathes A Sigh Of Relief Chicago Voters Appear To Reject New Real Estate Transfer Tax, CRE Breathes A Sigh Of Relief
'We Are Buying As Much Office As We Can Swallow': One Shark Is Circling Chicago’s Depressed Office Market 'We Are Buying As Much Office As We Can Swallow': One Shark Is Circling Chicago’s Depressed Office Market
Sterling Bay Woos New Financial Partner For Dormant Lincoln Yards Project Sterling Bay Woos New Financial Partner For Dormant Lincoln Yards Project
Chicago Mayor Will Move Forward With $1B Revamp Of LaSalle Street Corridor Chicago Mayor Will Move Forward With $1B Revamp Of LaSalle Street Corridor
 
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Short Seller Alleges Accounting Manipulation At REIT Equinix, Questions Its Operational Viability

Short Seller Alleges Accounting Manipulation At REIT Equinix, Questions Its Operational Viability  

A leading short seller is accusing data center giant Equinix of misleading investors. 

Hindenburg Research, in a report published Wednesday, alleged that the world’s largest data center REIT is intentionally manipulating its accounting to artificially inflate a key measure of profitability.  Hindenburg, which has taken a short position on Equinix, also claimed the firm has leased more power to…

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