McCallum's Musings on the Market

MCCALLUM'S MUSINGS ON THE MARKET!

The Federal Reserve implemented 3 rate cuts in September, October, and December 2025. Expect two additional quarter-point reductions in 2026, one more than Fed officials’ median forecast.
While the Fed is easing, it won’t solve fundamental issues with current DSCR tests and higher cap rates. NOI continues to be impacted by ever-increasing operating costs & CAPEX.
5yr & 10yr fixed interest rates continue to be favorable – recent quotes range from the high 5%’s to low 6%’s.

Navigating the Certainty of Uncertainty

McCallum's Music Pick: Peace Sells by Megadeth

CASE STUDY

Sacramento, CA
48,492 SF
Industrial property on 6.5 acres
5.98% fixed interest rate for initial 5 years
$3.84MM cash out refinance; unrestricted $1.65MM proceeds at close of escrow

John McCallum, Borrower’s Advocate, completed this cash-out refinance of a multi-tenanted industrial property in late 2025. The property featured a significant concentration of automotive tenants – sales, repair, Diagnostic & body shops; most of which were on staggered lease terms. Known for representing owners and investors in obtaining the best financing solutions, John sourced the ten-year loan term and provided the owners significant unrestricted loan proceeds to continue to grow their industrial real estate portfolio.

FEATURED ARTICLE

U.S. MANUFACTURING SLUMP SHOWS LITTLE SIGN OF ENDING

A closely watched index that measures U.S. manufacturing activity fell to 47.9% in December, the Institute for Supply Management said Monday. This is the lowest reading of the year and the 10th straight month of contraction in the factory sector. Any number below 50% signals contraction.

John McCallum

SVP of Commercial Finance

916.573.3313

johnmccallum@turtoncre.com

CA DRE Lic #01177134

2131 Capitol Avenue, Ste 100, Sacramento CA 95816

916.573.3300 | turtoncre.com

Lic #01219637