First National Realty Partners Anticipates Increased Commercial Real Estate Activity Following Federal Reserve Rate Cut

FNRP CIO Michael Hazinski Highlights Opportunities Emerging from Fed Rate Cut

RED BANK, N.J., Sept. 30, 2025 /PRNewswire/ -- First National Realty Partners (FNRP), a leading national private equity commercial real estate firm, anticipates increased commercial real estate transaction activity following the Federal Reserve's decision to reduce its benchmark interest rate. The firm's outlook, led by Chief Investment Officer Michael Hazinski, highlights lower borrowing costs, rising property values and ongoing rental growth as favorable conditions for necessity-based retail assets.

On September 17th, the Federal Reserve announced its first rate cut in nine months, lowering the federal funds rate by 0.25% to a range of 4.0% - 4.25%. Approximately half of surveyed Fed officials also projected one or two additional cuts by year-end, signaling a potential shift in the economic landscape.

"This rate cut marks a largely anticipated, yet positive signal for the commercial real estate market," said Hazinski. "While the immediate reaction moved treasury rates slightly higher, lower borrowing costs typically follow rate cuts over a period of time, creating stronger conditions for investment activity across the sector."

Hazinski noted three key factors driving this favorable outlook:

1. Lower Borrowing Costs: A lower federal funds rate typically leads to reduced interest rates over time, which translates into more attractive financing and all things equal, enhanced leveraged returns for property investors.
2. Increased Property Values: Capitalization rate movement tends to lag interest rate changes by two-to-four quarters. That said, declining interest rates often lead to lower capitalization rates over a period of time, which would increase property valuations in the long term.
3. Potential for Rental Rate Growth: The Fed's comments highlight elevated inflation, which often provides an opportunity to increase rental rates as space turns over, strengthening net operating income and long-term asset performance.

"These three conditions typically serve as drivers for increased transaction volume," Hazinski added. "Investors are drawn to the stability and yield of real estate relative to other asset classes, while existing owners are well-positioned to benefit from improved valuations and a more favorable lending market."

FNRP remains confident in the outlook for its retail portfolio spanning over 12.5 million square feet. According to Real Capital Analytics, U.S. retail transaction volume is up roughly 20% year-to-date through July, reflecting steady demand in the sector. The firm expects the Fed's rate cut to add further momentum, supporting a strong finish to 2025 and increased activity in 2026.

FNRP maintains flexibility across its portfolio and is currently executing strategic refinancings, selective sales and disciplined acquisitions. These transactions are in the backdrop of a historically strong necessity retail segment boasting rising occupancy and rental rates across the platform.

Disclaimer: This article is for informational purposes only and reflects the views of the author at the time of publication. It is not intended as investment advice or as an offer to sell or a solicitation of an offer to buy any security. Any projections, forecasts, or forward-looking statements are based on assumptions and current market conditions, which are subject to change without notice. Actual results may differ materially, and no assurance can be given that any outlook or expectation expressed herein will be achieved. Results are not guaranteed.

About First National Realty Partners

First National Realty Partners (FNRP) provides accredited investors with access to institutional quality commercial real estate, specializing in necessity-based retail nationwide. From acquisition to disposition, FNRP oversees the entire investment lifecycle through its vertically integrated platform. Leveraging top in-house talent in legal, acquisitions, leasing, and other key areas, FNRP creates sustainable value for its investors. For more information, please visit www.fnrpusa.com.

Contact:

Jessica DeMarino
[email protected]

SOURCE First National Realty Partners, LLC