WilmingtonBiz Magazine

Letter From The Editor: Of Notable Interest

By Vicky Janowski, posted Apr 4, 2024
Vicky Janowski
As this year’s real estate issue goes to press, a lot of eyes are watching Fed Reserve officials closely.

On March 20, U.S. stock indexes hit record highs after the Federal Reserve did nothing that day. Earlier in the day, the Fed held interest rates unchanged, again keeping the target range of 5.25% to 5.5%.

Maintaining comes after raising rates 11 times between March 2022 and July 2023 to combat inflation. 

Though the decision to do nothing was expected, the markets were buoyed by the central bank’s outlook for three rate cuts still this year despite recent data that shows that inflation has eased but remains high.

Investors, banks and college students who recently applied for a credit card to pay for spring break have a particular interest in the Federal Reserve’s interest. But so do commercial real estate developers.

Business Journal commercial real estate reporter Emma Dill talked to developers behind some of the projects that have been put on hold the past couple of years because of the pressures of rising costs and securing funding that stemmed from higher interest rates for the story “Pause & Reflect.”

“I would say probably one in 10 deals got done last year,” McKay Siegel, partner with East West Partners, told Dill about the rate’s impact on timing. “That’s probably trending to be true for this year … with the exception that maybe people are a little more optimistic about the back half of the year.”

Read more about the status of those paused projects here.

Other commercial projects are moving ahead in the area – particularly with multifamily, retail and office space.

Apartment projects continue to be announced and site work is visible in the Mayfaire area for the major mixed-use project Center Point. And bucking the national landscape, office vacancy rates are low in the Wilmington market, with new office buildings under construction. Read more about that and other area commercial real estate trends here.

As investors read the tea leaves on interest rate decisions, mortgage bankers also are keeping their eyes on the horizon, particularly with refinancing. An estimated $1.2 trillion of U.S. commercial real estate debt is set to mature in the next two years, according to the Mortgage Bankers Association, with a quarter of that coming from loans in office and retail.

There’s a lot to watch ahead for the commercial real estate sector, and a bird’s eye view couldn’t hurt.
Ico insights


Chris coudriet

A Public Service Profile on Strategically Addressing Our Community’s Needs

Chris Coudriet - New Hanover County Government
Screenshot2022 01 06at338 162234623

Food is the Foundation for Prosperous Communities

Girard Newkirk - Genesis Block
Jessiepowellheadshot webversion

5 Reasons to Build Custom Franchise Software

Jessie Powell - Wide Open Tech

Trending News

Lower Cape Fear LifeCare Welcomes New Board Members

Staff Reports - May 28, 2024

Novant To Sell, Leaseback Four Wilmington-area Properties In Statewide Effort

Emma Dill - May 28, 2024

CVB Announces Tourism Award Winners

Staff Reports - May 28, 2024

United Bank To Acquire The Piedmont Bank

Audrey Elsberry - May 28, 2024

UNCW Honors Faculty Awards Recipients

Staff Reports - May 28, 2024

In The Current Issue

Half Marathon Takes Whole Race State Title

The top half marathon in each state was crowned based on nearly 20,000 votes from runners across the country....

As Hurricane Season Heats Up, How Do Builders, Laws Prep Homes For Storms?

The damage caused by Hurricane Florence in 2018 throughout the region put a bigger spotlight on the need for the construction industry to fa...

MADE: Bean Counters By The Sea

Marine Bean is a family-owned and -operated business that buys all of its materials in the U.S., makes its marine-grade bean bags in Wilming...

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!



2024 Power Breakfast: The Next Season