Why Chase’s Al Brooks Isn’t Worried About Higher Interest Rates

National + Weekender | March 10, 2017

J.P. Morgan Chase’s Al Brooks is a respected voice of reason, surrounded by uncertainty in CRE investment markets. It would be difficult to argue against his latest musings on the merits of 200- to 300-basis-points-higher interest rates.

He opines, that fears of upcoming hikes are largely unwarranted. Brooks believes normalizing rates is actually good for CRE. First, it means the “incredibly cautious” money policy group is “confident that the economy can take it.”

Second, raising artificially low rates should produce higher rents and sale prices. Last, increases will keep oversupply in check, since borrowers tend “to be more prudent” with seeking financing on new construction.

Given historical rates, if current minimal increases are the deal breaker, it likely was not a smart investment.

One of the more interesting tactics in Brooks’ playbook is being hypervigilant about markets in which to invest, down to a neighborhood-by-neighborhood, street-by-street level.

For comments, questions or concerns, please contact Dennis Kaiser

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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