GlobeSt.com: What the Fed’s Rate Hold Means for California CRE

By Richard Berger | GlobeSt.com | March 20, 2026

In a recent GlobeSt.com feature, Parkview Financial CEO Paul Rahimian shared his perspective on the current rate environment and its impact on commercial real estate, particularly across California.

Rahimian highlighted the challenges developers are facing as elevated costs, persistent inflation, and broader geopolitical uncertainty continue to weigh on new construction. Volatility in pricing and inputs is making it more difficult to move projects forward, contributing to a slower pace of development despite ongoing demand for housing.

He also pointed to a more nuanced market backdrop, where select areas, including San Francisco, are seeing support from AI-related investment and continued rental demand. At the same time, high home prices are pushing more people toward renting, reinforcing underlying demand in the multifamily sector.

More broadly, the current environment is leading many developers to take a more cautious approach, with activity slowing as the market adjusts to higher rates and ongoing uncertainty.

Looking ahead, Rahimian noted that potential rate cuts later in 2026 could help improve market conditions. Until then, the focus remains on disciplined underwriting and navigating a market defined by cost volatility and limited visibility.

The full article is available to GlobeSt.com subscribers here