Brian Lerman, a partner in Goodwin’s real estate industry practice, recently shared insights on how institutional investors are navigating the challenges posed by today’s interest rate environment, which is driving more cautious and strategic behavior among investors. He discussed how this uncertainty is affecting deal pricing, due diligence and financing strategies, noting a shift toward securing financing commitments earlier in the transaction process. Lerman also explored how repricing dynamics vary based on asset quality and outlines the proactive steps investors are taking in anticipation of upcoming loan maturities.
How are institutional investors responding to today’s interest rate environment?
We are seeing institutional investors constantly evaluating interest rate uncertainty in the context of current real estate transactions.
In the context of new deals, interest rate uncertainty has led to challenge