Interest-Rate Increase No Cause for Panic

Posted on March 20, 2018

The Federal Reserve’s quarter-point interest-rate hike in December of 2017 was anticipated and not a cause for panic among commercial real estate investors and owners. Rather, considering the current strength of economy, it can be viewed as a positive signal that commercial real estate will continue to be a smart investment decision through 2018. While the Fed expects to raise rates in 2018, it will do so slowly, at a modest pace, and thereby quell fears of rising cap rates and declining property values. With the economy continuing in expansion mode, backed by job growth, higher wages and appropriate inflation changes, investors can command higher rates and higher sale prices for their real estate assets.

 

Strategic and well-advised investors should not fear that natural cycles of the economy. Instead, it should serve as a reminder to always remain vigilant and informed when assessing real estate investment opportunities.

 

The team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.