Interest rates are beginning to rise for commercial real estate

BOISE, Idaho - Aug. 10, 2015 - PRLog -- Talk of interest rate hikes has been prevalent in recent years and is now likely according to many economists. The Fed signaled on July 29, 2015, that it remains on course to raise interest rates this September. A slight increase is unlikely to cause a significant slowdown in commercial transaction volume, but it will persuade investors to be even more particular about the product they purchase. New opportunities could arise for buyers as some existing owners elect to sell at the first sign of an increase.

According to a recent CoStar article (link below), some banks are proactively raising their rates. Signature Bank, which is based in New York, recently polled their competition and elected to raise their five-year fixed rates 50 basis points due to increases they saw in the market. Signature Bank is just one of many in the market bumping rates. There have been rate bumps in the past that turned out to be anomalies and not a trend, however, many people believe this uptick could likely to hang around for the foreseeable future. Competition from banks for strong commercial real estate transactions will continue to be high, dampening interest rate increases that are too steep.

For more information on the CoStar.com article, click here (http://www.costar.com/News/Article/CRE-Borrowing-Rates-Ed...).