SVN ECONOMIC UPDATE – JULY 28, 2023
1. FED INTEREST RATE DECISION On July 26th, The Federal Reserve raised their benchmark interest-rate by 25 bps, reversing a pause in rate-hikes that occurred in June. While the June pause was intended to start a “wait and see” approach by officials, their meeting minutes and commentary in recent weeks suggested to the market that […]
ECONOMIC UPDATE – JULY 16, 2023
1. INFLATION The consumer price index (CPI) rose by 0.2% month-over-month and 3.0% year-over-year through June, according to the latest numbers from the Bureau of Labor Statistics. June’s monthly pace was a slightly uptick from May, but inflation continued to trend down on an annual basis. Shelter remains the largest contributor to month-over-month price increases, […]
How To Use A 1031 Exchange
How To Use A 1031 Exchange A 1031 Exchange is a long-term capital gains tax deferment option for business owners and investors looking to sell a piece of real estate and purchase another of equal or greater value within a short time period. The purpose of a 1031 Exchange is to defer the cost of […]
ECONOMIC UPDATE – JUNE 30, 2023
1. INTEREST RATE OUTLOOK Despite the Federal Reserve’s decision to hold rates constant at their June meeting, current market forecasts project an 81.8% chance that the FOMC will move forward with a 25-basis point hike in July, according to the Chicago Mercantile Exchange’s Fed Watch Tool. In June, officials placed their year-plus hiking cycle on […]
ECONOMIC UPDATE – JUNE 16, 2023
1. FED MEETING MINUTES Minutes from the FOMC’s May 2-3 policy meeting showed that central bank policymakers were split on the decision to continue raising interest rates or pause increases during its most recent vote. Ultimately, the decision to raise rates by 25 basis points in May was unanimous. However, the minutes signal that officials […]
Central PA Multifamily Unit Growth
MULTIFAMILY NEW CONSTRUCTION AND MARKET UPDATE Within Central PA, we are fortunate to have a multifamily rental market that is very solid. Just like the stalwart “Pennsylvania Dutch” that first populated this region, we perform well with consistent population growth and a diverse economy. While some markets are seeing dramatic highs and lows over economic […]
Triple Net and Gross Leases
WHAT IS THE DIFFERENCE BETWEEN A Triple Net (NNN) v. GROSS LEASE? A common question that we receive is for an explanation of the differences between the various commercial real estate lease types. This is especially the most common types, triple net, and gross leases. Before we get into the specific differences between each type […]
MAY 26, 2023
1. FED MEETING MINUTES Minutes from the FOMC’s May 2-3 policy meeting showed that central bank policymakers were split on the decision to continue raising interest rates or pause increases during its most recent vote. Ultimately, the decision to raise rates by 25 basis points in May was unanimous. However, the minutes signal that officials […]
What Is A Cap Rate and Why Does It Matter?
WHAT IS A CAP RATE AND WHY DOES IT MATTER? In commercial real estate, the term “Cap Rate” gets used a lot, but we have found that many people do not know what a Cap Rate is, how it is calculated, or why it matters. To start with, the term Cap Rate is short for […]
MAY 12, 2023
1. CPI INFLATION RATE US annual inflation continues to decelerate through April. As reported by the BLS, the Consumer Price Index grew 4.9% year-over-year as of the most recent reading. The current pace of growth indicates a slowdown compared to the 5% year-over-year growth witnessed in March, signaling a gradual easing of inflationary pressures. Despite […]
