In a keynote speech at the U.S. Federal Reserve’s annual retreat at Jackson Hole, Wyoming, last Friday, Fed Chair Jerome Powell signaled the potential for future interest rate cuts, although no exact timing was given. “The time has come for policy to adjust,” Powell said, citing cooling labor market conditions as a reason that inflationary fears had lessened.

Addressing the negative impacts of prolonged high interest rates on the commercial real estate industry has been a priority for NAIOP’s 2024 advocacy efforts. Billions in commercial real estate debt originally issued at near zero-percent interest rates need to be refinanced each year. At the same time, the banking sector has been moving to reduce commercial real estate assets in their portfolios, leading to constrained credit conditions for commercial real estate.

The Federal Reserve’s next policy meetings are scheduled for Sept. 1 and 18, and most expect it will lower the benchmark federal funds rate at that meeting.