Commercial real estate remains in a waiting pattern as elevated inflation and steady economic growth continue to delay interest-rate relief, according to Ryan Severino, chief economist at BGO.
In a recent commentary, Severino said higher borrowing costs continue to pressure refinancing activity, floating-rate debt and transaction volume, while investors look for clearer signals from the Federal Reserve. The Fed held interest rates unchanged last week as the economy continued to expand and inflation remained elevated, with policymakers weighing the risks of cutting rates too soon against waiting too long as the labor market cools. Real GDP grew at a 2.0 percent annualized rate in the first quarter, supported by investment, exports and consumer spending, although weaker residential and nonresidential construction activity reflected softer conditions in parts of the economy.
Severino noted that pr
