The adverse effects of rising interest rates on CRE market

Over the last year and a half, we have seen base rates rise 100-fold to levels not seen in 15 years. The accelerated pace of Federal Reserve tightening, in an effort to combat inflationary pressures, has made the cost of borrowing for owners of commercial real estate dramatically higher and has negatively affected the cash flow profiles associated with those assets.

In a recent blog post, Christian Cruz, senior associate, investment research, at Canterbury Consulting, illustrates how the sharp rise in interest rates, as well as other drivers, has affected the commercial real estate market and the opportunities that exist for well-capitalized investors.

To read the full blog, click here.