Roundtable explores historical precedent and lender relationships

When it comes to the macroeconomic environment, interest rates remaining “higher for longer” has become the focal point in discussions. During a recent virtual roundtable conducted by Institutional Real Estate, Inc., where institutional investors, consultants, and investment managers converged, moderated by Chase McWhorter, managing director, Americas, one participant emphasized the importance of historical precedent when describing the current environment.

Taking a longer-term view, the current interest rate environment only seems “higher” when compared to the past decade of extremely low interest rates. These historically low real interest rates have been around since the global financial crisis (GFC). Perhaps the current rates are actually a return to normal.

Even if we are seeing a normalization of interest rates, it is still a challenging borrowing environment. And as cap rates rise in conjunction with the rise in interest rates, property values must neces