Posted on: January 12, 2016
The US Federal Reserve raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25% and 0.50% last month and emphasized a plan to raise it gradually over the next three years.
“This action marks the end of an extraordinary seven-year period during which the federal funds rate was held near zero to support the recovery of the economy from the worst financial crisis and recession since the Great Depression,” Federal Reserve Chairwoman Janet Yellen said in her announcement of the rate hike.
This modest hike in interest rates reflects a heightening of economic activity and shows that the US government is confident that the economy is on a path of sustainable improvement.
The good news for our investors, and for those considering investing in US commercial real estate, is that this is an early sign that the US economy is experiencing a stable recovery after the financial crisis of 2007-2009. As the economy continues to strengthen, higher rents and increases in property values typically follow.
According to Yellen, the interest rate hike “recognizes the considerable progress that has been made toward restoring jobs, raising incomes, and easing the economic hardship of millions of Americans and it reflects the committee’s confidence that the economy will continue to strengthen.”
Given this promising indication of US economic recovery, 2016 will be the ideal time to capitalize on US commercial real estate investment opportunities with significant upside potential. We project that over the next five years US commercial properties (particularly in the Florida area) will see significant value increases, which will in turn yield substantial ROI to early investors.
MSR Holdings Inc. acquires exclusive commercial real estate investment opportunities in the US and Canada, currently focusing on Orlando, Florida. Contact us today to discuss becoming one of our select investors.
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