In this Commercial Observer podcast, finance reporter Andrew Coen is joined by Tom La Salvia, a senior economist at Moody's Analytics who specializes in commercial real estate, to discuss the impact of rising interest rates on the industry. With the Federal Reserve's next meeting just around the corner, the conversation delves into what the commercial real estate sector can expect to hear from Fed Chairman Jerome Powell, and how that will impact financing and investment decisions.

As La Salvia explains, the industry is looking for clarity from the Fed regarding its forecasts for interest rates and the longer-term equilibrium for rates. With buyers and sellers still far apart in terms of valuations, the discussion also explores the current state of cap rates and debt service coverage ratios, and how underwriters are navigating these challenging borrowing conditions. This podcast is a must-listen for anyone interested in understanding the current state of the commercial real estate industry and the factors influencing its performance.