Interest Rates Are Rising - What's Next For Commercial Real Estate

Interest Rates Are Rising - What's Next For CRE // After hitting all-time lows in the summer of 2020, interest rates have started creeping up since August of last year.

And in the beginning of 2021, rates have seen an even sharper increase in the first quarter of the year, with the 10-year US treasury rate sitting at just 0.93% on December 31, 2020, and jumping up to 1.73% by March 29th of this year.

And with treasury rates commonly used to price commercial real estate loans, the result of this has been rapidly increasing borrowing costs for real estate investors in the first quarter of 2021, which could shake some things up in the industry throughout the rest of the year.

So whether you’re looking to invest in a deal over the next few months, or you just want to be prepared if an interview question is thrown your way on the impact of rising interest rates on commercial real estate, in this week's video, we’ll walk through how interest rate increases might affect commercial real estate throughout the rest of 2021, and how property values might be affected as a result.

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Research and articles referenced in this video:
https://www.naiop.org/en/Research-and-Publications/Magazine/2014/Spring-2014/Finance/Interest-Rate-Impacts-on-Commercial-Real-Estate
https://fred.stlouisfed.org/series/GDP
https://www.naiop.org/en/Research-and-Publications/Magazine/2015/Spring-2015/Development-Ownership/Real-Estate-Takes-Its-Place-as-the-Fourth-Asset-Class
https://www.hodesweill.com/research
https://5f4e89a9-4c6c-44a4-b3f3-9fb2b125ff9e.filesusr.com/ugd/abfec0_b1c8bc0e9bbc449191c47c096b49bfd7.pdf
https://www.pwc.com/jg/en/publications/etre_us_2019_report.pdf
https://www.cbre.us/research-and-reports/US-Capital-Markets-Figures-Q4-2020

Видео Interest Rates Are Rising - What's Next For Commercial Real Estate канала Break Into CRE