VIDEO: Interest Rate Insights from Connect LA Experts

Rising interest rates have become a significant economic headwind in the 2nd quarter of 2022 for the commercial real estate industry, and many deals have gone sideways as a result.

In this video featuring Tony Natsis, Partner at Allen Matkins, Joseph Derhake, CEO of Partner Engineering and Science, David Waite, Partner at Cox, Castle and Nicholson, Richard K. Green, Director and Chair of the USC Lusk Center for Real Estate, Chris Cooper, Principal, Managing Director-Southern California at Avison Young and Carl Muhlstein, Executive Managing Director at JLL, the question was posed: “Will the industry adjust to higher interest rates?”

Derhake says the higher rates HAVE led to a slowdown, but as Muhlstein puts it, “the industry has no choice BUT to adjust.” However, as both Natsis and Muhlstein mention, there’s plenty of “dry equity powder” helping to overcome the debt worries and keep the CRE industry relatively busy. 

You can see a recap of the entire June 22nd Connect LA event at the Downtown Hotel Indigo here.