Last Monday I promised the results. Florida passed its bigger homestead exemption, North Carolina voted to require limits on property tax increases, and San Francisco ended a tax break on large commercial foreclosures. Below: what the election means for commercial real estate, Florida's vote, and a key rate at its highest since 2002.
This Week in CRE, in Three Numbers
1. 10 of 12: Midterms followed by positive private commercial real estate returns
Private commercial real estate returns were positive after 10 of the last 12 midterms, per Cushman & Wakefield. Democrats won both chambers of Congress, setting up divided government from January 2027, which Cushman says will likely make major legislation more difficult. Its read: the Fed and the economy, more than Congress, set the level of rates. Past market results don't predict how any investment will perform.
Source: Cushman & Wakefield
2. 62%: Florida passes a much bigger homestead exemption
Amendment 3 received 62% of the vote, above the 60% it needed. The homestead exemption on non-school property taxes rises from about $50,000 to $150,000 in 2027 and $250,000 in 2028. For investors, the yearly cap on assessment increases for non-homestead property, such as rentals and commercial buildings, falls from 10% to 5%, so their taxed value can rise less each year.
Source: Inman
3. 5.13%: The 10-year Treasury's October average, the highest since 2002
The 10-year Treasury averaged 5.13% in October, its highest monthly average since 2002, per Cushman & Wakefield. As of November 4, futures priced an 83% chance of a quarter-point Fed hike in December. Long-term yields like this one feed into mortgage and commercial loan rates.
Source: Cushman & Wakefield
The Takeaway
Cushman & Wakefield says the Fed and the economy, more than Congress, set the level of rates, and the 10-year Treasury averaged its highest since 2002 in October.
Your Read
Which will shape your next property decision more: rates, taxes or the new Congress?
