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Interest Rates in Retail Real Estate: What the 2024 Election Means for You!

Hey, Retail Real Estate Rockstars!


Ever wondered if the political whirlwind of an election year could stir up the retail real estate waters? Let's unravel this mystery and dive into the world of interest rates and their impact on our market.


Election Year vs. Non-Election Year: Here's a tidbit that might surprise you: The average 10-year treasury rate during election years was 5.63%. But during non-election years? A close 5.68%. That's right, the difference is teeny-tiny!


The "Normal" Rate Rollercoaster: Depending on when you hopped onto the retail real estate ride, your perspective on "normal" interest rates might vary. But, for some perspective, the long-term average for the 10-year treasury stands at 5.6%. And where are we now? A comfy 4.25%, which is lower than the historical average!


Retail Real Estate's Rhythmic Dance: With the current interest rates, our market is swaying to a recalibration beat. But fear not! This just means we're adjusting our dance steps. And with a growing crowd eyeing commercial real estate, our dance floor (read: capital) is expanding. This suggests our cap rates will soon find their perfect rhythm.


Attention Retail Real Estate Owners!


It's time to harness these insights and plan your next move. Stay updated with market trends, and remember, being informed is your superpower. If you're pondering over your retail space's potential or just want some market chit-chat, give us a shout! Together, let's navigate these exhilarating times.



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