September 26, 2025
If President Trump were to replace the Federal Reserve chairman with someone intent on aggressive rate cuts, commercial real estate investors could see one of the most significant market resets in a generation.
Lower borrowing costs would immediately:
- Unlock stalled development pipelines
- Reprice cap rates and push valuations higher
- Create refinancing relief for owners under floating-rate debt
- Attract new institutional and family office capital back into real assets
The downstream effect? Asset classes that have been frozen by rate uncertainty—industrial, multifamily, even office conversions—would suddenly be back in play. Investors positioned with dry powder and conviction could pick up distressed deals today and ride a policy-driven tailwind tomorrow.
Politics aside, leadership at the Fed is one of the few levers that can reset the CRE cycle overnight.
Would you buy aggressively now if you believed rates were headed materially lower in the next 12 months?