How Illegal immigrant aspect is affecting commercial real estate

[Carlos Ptriawan]

we know that commercial real estate really depends on interest rate.

but what's the relationship between illegal immigration and CRE ? well, there's relationship.

All these theory is surfacing lately. We know the unemployment number is reduced heavily, but that number 90 percent is coming from part time jobs while full time people is losing job. So the BLS is accounting for those illegal immigrant. When those illegal immigrant is working  it gives pressure to wage so it reduce inflation, but also reduce unemployment.

Since unemployment is reduced, there's not much pressure for the Fed to reduce rate. In fact, Fed things to increase one more hike this year. With high interest rate we know some CRE/banks would get hit.

But I heard also, gov. is trying to do loan modification as much as possible to those CRE in distress.

So lot of thing going on in the background that's very interesting ...

[Jacopo Iasiello]

Illegal immigration can impact labor markets and economic dynamics, its direct influence on commercial real estate is intertwined with broader economic trends, government policies, and market conditions.