In March 2022, the Fed introduced its first rate hike since December 2018 and has indicated that it plans to continue raising the federal funds borrowing rate over the next 12 months to battle inflation. Investors that have enjoyed a long-run of incredibly cheap capital are bracing for higher costs ahead. What are the implications of higher interest rates for CRE investors? Some of the topics to be discussed include:
What’s the near-term outlook for rising rates and lender spreads?
How are higher rates impacting financing strategies and capital stacks?
What are strategies borrowers can use now to mitigate rate risk and lower cost of capital?
Are lenders tightening credit? What are the latest trends in underwriting and debt service coverage ratios (DSCRs)?