June 22, 2015
It looks like the Fed will rise interest rates by the end of the year, albeit slightly, which is a situation commercial real estate executives have had their eyes on for a while now. But despite what some by have thought, it probably won’t have a major impact on REITs and their major asset holdings.
Some experts are saying that there is no evidence that REITs have ever been impacted by rising interest rates, and there is no reason to think that this small increase will make that much of a difference. Plus, if rates do go up, it is a reflection that we have a stronger economy, meaning that property fundamentals, the real numbers that drive commercial real estate values, are stronger.