Monday, May 2, 2011

Implications of Rising Interest Rates on CRE Recovery

With a 100 basis point increase in interest rates in the last four months, the natural reaction would be a decline in pricing for 2011 however with Multi Family, that will not necessarily be the case. Strong absorption rates nationwide and especially core markets are driving pro-forma underwriting. With local assets well informed principals are underwriting 5% rental increases annually for the next three years.
Read it here

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