08 Jun 2018

Rising interest rates and commercial real estate

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Thumbnail - Rising interest rates and commercial real estate
by Indraneel Karlekar, Ph.D., Senior Managing Director, Global Research & Strategy
Arthur Jones, Director Real Estate Research

Commercial real estate investors are wondering:

  • How high rates will go?
  • When higher rates will start to impact values negatively?
  • What to do when rates rise and values come under stress?

As interest rates are heading higher, real estate investors should use this growth environment to work their assets as hard as possible in order to offset the headwinds from higher interest rates and be prepared for a more modest but still positive period of investment performance over the next few years.