T
he Federal Reserve recently pulled off a surprise move reminiscent of my grandfather's tradition of giving my father a quarter and a cold Dr. Pepper whenever they met. My father would often recount how his grandfather would occasionally upgrade the treat to a half dollar, sending him into raptures.

    Similarly, the Fed's 50-basis-point rate cut exceeded our expectations, injecting much-needed relief and optimism into the real estate sector. Despite months of risk-off sentiment, we're already seeing signs of a shift: more bids during post-Labor Day call for offers and a narrowing bid-ask spread.

    While the rate cut itself doesn't fundamentally alter the market math, it does convey confidence that rates won't rise or stagnate. Looking ahead, we anticipate a surge in market activity driven by delayed PIPs, upcoming debt maturities, or LPs needing to return capital. With further rate cuts expected in Q4, 2025 is shaping up to be a more active year for real estate transactions.

    We're looking forward to connecting with many of you at The Lodging Conference to discuss these market dynamics and opportunities.