Brian Bailey, a subject matter expert in CRE in the Atlanta Fed’s Supervision, Regulation, and Credit (SRC) Division spoke to the RPN Intown group this month and shared his thoughts on where the economy is heading. We are definitely seeing some indicators that the economy is slowing. Capital generally remains readily available, with the exception of Class B (and lower) malls and some retail. Some CRE lending segments appear very aggressive, especially non-bank lenders. According to market participants, CRE pricing “feels” toppy. The decline in the 10-Year Treasury yield may lead to another round of cap rate compression.