Interest-Rate Increases Aren’t Hurting CRE

The Federal Reserve Bank’s potential increase of interest rates is a sign that the economy is performing well, and contrary to what some people in the commercial real estate industry might think, there will likely be minimal impact on the performance of assets.

In fact, Calabasas-based Marcus & Millichap just issued a capital markets report that states commercial real estate is going to be fine due to expanded retail growth and payroll increases, among other economic boosters. Hessam Nadji, senior executive vice president of Marcus, says that interest rates are bound to rise, but it’s a “normalization” for the Fed to take such action.