Weekly Market Updates - 12/01/2025

• Fed rate cuts and market outlook for 2026

The Federal Reserve has lowered its key policy rate twice in 2025 and may cut again at its December meeting. Policymakers are expected to signal the path for rates into 2026, with projections pointing to a gradual decline if inflation cools and the labor market remains stable. Historically, stocks perform well during slow, steady rate-cut cycles, benefiting sectors like technology, real estate, and small caps. However, risks remain if inflation stalls or economic conditions weaken, which could lead to volatility despite easing policy. (Source: The Federal Reserve, November 2025)

• Optimism takes a hit as small businesses navigate elevated uncertainty

Small business optimism declined in October, with the NFIB’s index falling to 98.2—its lowest since April and well below the December 2024 peak of 105.1. Uncertainty remains high, though slightly improved from last year’s record levels. Sales and earnings expectations weakened, while hiring plans slipped, even as labor quality concerns rose sharply, especially in construction and transportation. Immigration restrictions and a shrinking foreign-born workforce are adding pressure to labor supply. Inflation concerns persist, but fewer businesses plan price hikes compared to prior months. (Source: CoStar Economy, November 2025)

• Forecast sees yields set to fall across commercial property next year

Commercial real estate yields are projected to decline in 2026 as interest rates ease and investor demand strengthens. Analysts expect lower borrowing costs to support property valuations, particularly in sectors like multifamily and industrial, while retail and office markets may see more modest improvements. The outlook suggests a more favorable environment for capital flows into CRE as monetary policy shifts toward accommodation. (Source: CoStar, November 2025)

• Nashville property taxes could rise with proposed Midtown business district

City officials are considering creating a Midtown Business Improvement District, which could lead to higher property taxes for businesses in the area. The proposal aims to fund infrastructure upgrades and public services to support continued growth in one of Nashville’s busiest commercial corridors. If approved, the district would join similar initiatives in downtown and other high-traffic neighborhoods. (Source: The Tennessean, November 17, 2025)

• Nateland team scouting sites for potential Nashville project

The team behind the popular Nateland podcast is touring multiple locations in Nashville as part of plans for a new entertainment venue. While details remain limited, the project could include live events and community engagement spaces, reflecting the growing trend of media brands expanding into physical experiences. (Source: Nashville Business Journal, November 20, 2025)

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