Showing posts with label interest rates. Show all posts
Showing posts with label interest rates. Show all posts

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.
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