The CRE market has come to terms with the current interest rate level, JLL CEO Christian Ulbrich said during a Money Movers interview on CNBC last week. The recent uptick in rates is not helpful for deal-making but is not a disaster, he said.
“As long as it kind of stays in that corridor up to 4.50% on the 10-year (treasury yield), I think the market will be fine,” he said, acknowledging a slightly increased cost of capital that prices are likely to adapt to.
JLL estimates there is $373 billion of dry power on the sidelines that should drive growth during the coming year. Transactions were up for JLL during the third quarter, driven by all real estate sectors, including office, said Ulbrich. The most robust interest has been in the residential and hotel sectors, he said.
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