Analysts believe it is becoming more and more likely that commercial real estate loans coming due in the next few years will face a higher rate environment. However, the strengthening economy is expected to offfset near-term investor risk.
Two notable commercial real estate developers and investors support the assessment that property fundamentals are catching up to the valuations created by strong capital flows into the property markets.
Owen D. Thomas, CEO of Boston Properties, said, "If interest rates go up it’s going to be because the economy is improving and, therefore, demand for real estate will go up and rents will go up.”
Read more...Strengthening Economic Activity Seen Offsetting Investor Concerns Over Interest Rates - CoStar Group
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