John Metzger, Managing member of the West Palm Beach office of McDonald Hopkins, left, and .Shawn Riley, President of the firm’s Cleveland office.
At the beginning of last week, as the Federal Open Market Committee’s meeting approached and a rate cut appeared likely, we began thinking about the implications of a rate cut for the business community in general and our clients in particular.
For example, at a time when the fundamental economics for real estate ownership are strong, a rate reduction could provide a unique opportunity for owners to refinance loans that are either nearing maturity or may have higher rates. For anyone who had been on the fence, the rate reduction could provide the impetus to refinance or could encourage would-be buyers to complete potential acquisitions or development opportunities that were marginal or even infeasible at current market rates.
