Commercial Real Estate with Carson Jones

Rate Hikes Have Wiped Out Construction: Cash Out or Ride the Wave?

Jerome Powell’s rate hikes have slashed new construction starts by ~60% since 2021, shaking up industrial and multifamily markets. Opportunities await savvy owners.

Multifamily:
Oversupply from 2021–22 projects softens rents, but tightening supply signals rent growth by 2026.

Industrial:
With ~5% Class A vacancy and slowing construction, rent growth looms in 2025.

For under-leveraged owners, now’s the time to act:
• Less competition for tenants
• Stronger rent growth potential
• Stable asset values

Your move?
• Sell: Cash out in high-demand markets.
• Hold: Wait for rent and value gains.
• Reposition: Upgrade to capture higher rents.

Commercial Real Estate with Carson Jones, Nashville Metro Tennessee