Squeezed Property Owners Put Their Faith in the Fed

The Fed might be done raising rates. But can the cost of debt drop fast enough to save struggling landlords?

Property stocks are up 5.4% since Tuesday’s consumer-price index data showed that U.S. inflation is easing. Commercial real estate has been a big casualty of higher interest rates. Property values have fallen by a fifth since the Fed began hiking in March 2022 and almost 8% of securitized property loans are in distress, according to CRED iQ data.