This year commercial real estate has been in a tough spot, as interest rates remain high and other factors such as the election cause hesitation. However, positive signs are emerging at least in Chicago.
Mike Kamienski, real estate industry leader and principal with advisory firm Baker Tilly, told GlobeSt. that he's been noticing an "uptick in transaction volume" in the past 30 days in the metro area. It's not exactly where the CRE sector would like it yet – but a positive development nevertheless. The activity comes as the Federal Reserve cut interest rates for the first time in four years in September after hiking them 11 times between March 2022 and July 2023 in efforts to tame inflation.
"There was a large gap for 12, or 18, months, between the buyer and seller in terms of what they thought the value of the underlying real estate was," Kamienski said.
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