Скачать или смотреть September 2023 jobs report, 10-Year Bond and CRE?

The September jobs report outperformed expectations indicating a strong labor market with 336,000 new positions. This is a signal of economic resiliency, and it puts more pressure on the Fed to raise rates.

Simultaneously, the rising yields on 10-year Treasury bonds are a barometer of expected inflation and economic strength. When these yields rise, it’s often a precursor to the Fed increasing the federal funds rate.
Chances of a rate hike in November is now above 30%, further backed by the strong jobs data.

Now, tying this back to CRE:
Higher interest rates reduces the appeal of leveraging to invest in commercial properties like shopping centers. This can lead to further slowdown in transactions and might impact valuations.
On the flip side, a strong jobs report means more people are employed and likely to spend, which could be great for retail and retail property owners.

While rising rates may pose challenges for investors due to increased borrowing costs, they could also offer a silver lining for retail spaces buoyed by a strong labor market.

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