How High Interest Rates Impact Commercial Real Estate

High interest rate environments can have a significant impact on the commercial real estate market. After all, most investors utilize leverage to increase their returns and an increase in borrowing costs makes that leverage more expensive for developers and investors, which decreases potential returns and, therefore, demand for new projects. Here’s how high interest rates impact the commercial real estate market.

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Tyler is a Nashville native and the best-selling author of Open For Business: The Insider's Guide to Leasing Commercial Real Estate. He has experienced all sides of commercial real estate deals, including brokerage, management, investing, and development.

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The information provided in this video should not be construed or relied on as investment advice for any specific fact or circumstance. Its content was prepared by Tyler Cauble with its main office in Nashville, TN. This video is designed for entertainment and information purposes only. Viewing this video does not create a broker-client relationship with Tyler Cauble or any of its agents. You should not act or rely on any of the information contained herein without individual professional advice.

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[serg_lupescu]

This also causes investors to be more creative and work harder to find off market deals. As the saying goes, “don’t wait to buy real estate, buy real estate and wait.”

[TylerCauble]

How have shifts in interest rates impacted your world?

[ImLearningToTrade]

Great insight! I am glad I subscribed. Hopefully understanding of the markets will translate to commercial real estate when it comes to evaluating deals.

[piRatCaptain]

We will see how short term the high rate environment will be. Fed said rates will be high a long time. They have not signaled they are done increasing. I'm hearing about a lot of cash calls and rumors of defaults coming soon. That will be a drag for some time.