The Federal Open Market Committee holds its next meeting Sept. 16 and 17. Chair Janet Yellen and the other members of the Federal Reserve Board will be considering whether to increase the federal funds rate, which is now at virtually zero.

Of course, no one knows when interest rates will rise, but an interest rate increase is expected by many before the end of this year. In July, Yellen told Congress, “If the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate target, thereby beginning to normalize the stance of monetary policy. Indeed, most participants in June projected that an increase in the federal funds target range would likely become appropriate before year-end.”

Rising interest rates will increase borrowing costs for property owners. And, historically, there has been a relationship between interest rates and cap rates. An increase in the former is expected by many to hav