Absolutely.
Historically, some of the best commercial real estate investments have been made during periods of elevated interest rates and economic uncertainty.
Higher borrowing costs often reduce transaction volume, cause some buyers to move to the sidelines, and create opportunities for disciplined investors with access to capital.
Periods of higher rates can lead to:
- Motivated sellers
- Less buyer competition
- Better pricing negotiations
- Loan assumptions
- Recapitalization opportunities
- Distressed acquisitions
Many of today’s most successful investors built substantial portfolios during periods when capital was expensive and competition was limited.
While rising rates create challenges, they often create opportunity as well.