Renowned Capital-Markets Strategist thinks Commercial Real Estate is getting Expensive

Well-known capital-markets strategist, Janet Yellen, is back.  Janet is back on Capitol Hill for congressional testimony, to answer questions about leaked information, interest rates and market valuations. One of the world’s preeminent central banks made it a point to worry about the rising prices in commercial real estate.  The Fed essentially is saying “valuation pressures in commercial real estate are rising as commercial property prices continue to increase rapidly”. The S&P 500 hit a high on May 21st before the Greece crisis, but is slowly rising back up again.

About a year ago in a report to congress, Yellen singles out two types of stocks, social media and biotech, stating that valuations in these momentum driven sectors were substantially over-stressed. While she was not too keen on social media stock, she did say biotech firms are still hot.  Usually the Federal Reserve takes a hands-off approach to markets but the central bank just can’t ignore them.  Ben Bernanke said in 2010 that rising stock prices would increase the “wealth effect,” the idea that if people feel wealthy they’ll spend more, which will spur the economy, which will result in more actual wealth. Only time will tell what happens to our stock market and economy.

Click here for the full article from The Wall Street Journal, or click here for more Front Street news.

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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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