In September, the Federal Reserve cut the Fed funds rate by 50 basis points, potentially benefiting interest rate-sensitive sectors like commercial real estate. Lower borrowing costs could revive deal activity, which had slowed. Analysts suggest that while lower rates aren't a "magic bullet," they could aid recovery in the commercial real estate market. Multifamily properties are in demand, but the office sector faces challenges. Transaction volumes rose for the first time since 2022, indicating potential market improvement.
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