Originally published on October 12, 2022, by Matt Baron for NAIOP.
Midway into a panel discussion at CRE.Converge, a quip about the Federal Reserve behaving like a novice teenaged driver – “way too much gas, way too much brake, way too much gas” – drew laughter from many attending the jampacked session. But palpable nervousness tinged those chuckles at the metaphor by moderator Bart Johnson, president, and CRE market head, of Wintrust Bank.
Questions over the duration and extent of rising interest rates have slowed overall market activity. And no one on the panel predicted relief from the ongoing suspense any time soon.
In fact, the first perspective offered by Peter Schultz, a 39-year industry veteran who is executive vice president – of East region, First Industrial Realty Trust, Inc., was that “rates are going to rise, there’s going to be more pressure for sure. I don’t think that’s going to change any time soon.”