Law360 featured Real Estate Practice Group Chair Eric Rapkin in its analysis of the recent federal interest rate cut and its potential effects on the commercial real estate industry. Eric noted that the rate reduction is broadly positive for CRE, as lower borrowing costs generally help spur market activity. However, he emphasized that while the move is welcome, it does not negate ongoing industry challenges — including rising construction costs, insurance rates, possible effects from tariffs, and a softer labor market.
“Any reduction in interest rates is a terrific thing for the commercial real estate industry. Lowering borrowing costs always spurs activity, in all sectors of the CRE world,” Eric told the publication.