Commercial Property Executive: Federal Reserve Cuts Rates for the Third Time in 2025

By Matthew Kaufman | Commercial Property Executive | December 10, 2025

The Federal Reserve has lowered interest rates for the third time this year, reducing the federal funds rate by 25 basis points to a target range of 3.50% to 3.75%. The move reflects the Federal Open Market Committee’s continued effort to balance moderating inflation with signs of slowing economic growth.

As reported by Commercial Property Executive, the committee made its latest decision amid limited access to current economic data following delays related to the federal government shutdown. Inflation remains above the Federal Reserve’s long-term target, while labor market indicators have been slower to materialize, contributing to a measured policy approach.

For commercial real estate, the latest rate reduction is expected to provide incremental support for transaction activity across select asset classes. Lower financing costs may improve deal feasibility in sectors such as industrial and logistics, where fundamentals remain relatively resilient. Office, however, continues to face structural challenges, with capital availability and lender participation remaining constrained despite a lower rate environment.

Looking ahead, uncertainty remains around the Federal Reserve’s policy path in 2026. While current projections suggest the potential for additional rate cuts, future decisions may be influenced by changes in Fed leadership and broader economic conditions.

Paul Rahimian, CEO of Parkview Financial, noted in Commercial Property Executive that additional rate cuts could occur through the end of 2026, with outcomes likely influenced by future Federal Reserve leadership and policy direction.

Parkview Financial continues to closely monitor macroeconomic developments and remains focused on providing flexible capital solutions to commercial real estate sponsors across market cycles.

Source: Commercial Property Executive, December 10, 2025