Economic Update: Higher Interest Rates Continue to Shape Commercial Real Estate

SVN’s late June 2026 economic update highlights a resilient but cautious economic outlook. The Federal Reserve held interest rates steady for a fourth straight meeting while signaling a higher-for-longer policy stance as inflation remains elevated. For commercial real estate, property values continue to stabilize, but higher borrowing costs are expected to keep transaction activity subdued. The report also notes resilient consumer spending despite weak sentiment, improving multifamily fundamentals, and ongoing credit stress in parts of the commercial real estate lending market.