Commercial Observer: CRE Industry Watches Fed Rate Cut

By Andrew Coen | Commercial Observer | September 17, 2025

Commercial Observer reports that the Federal Reserve cut interest rates for the first time in nine months, lowering its benchmark rate by 25 basis points. The CRE industry is watching closely, anticipating that this move could mark the beginning of a longer trend toward reduced borrowing costs.

In the story, Paul Rahimian, Founder and CEO of Parkview Financial, noted that while short-term rate cuts are encouraging, long-term interest rates will ultimately play a larger role in the health of commercial properties. He pointed to ongoing concerns around inflation, tariffs, and national debt as factors that may keep the long end of the yield curve elevated.

Rahimian also shared that lending volume in early 2025 was “very stagnated” due to higher-for-longer conditions and uncertainty around tariffs, but he expects late 2025 to be more “dynamic” as the market gains clarity on rates.

The full article, originally published by Commercial Observer, is available to subscribers here