Commercial Real Estate Loans
There lies a golden opportunity today for owner-user commercial real estate owners as well as for investors. While the Fed has raised the Federal Funds Rate over 10 times, interest rates on commercial real estate loans have remained relatively flat...and very low realtive to historical rates. This situation is not likely to last much longer as inflationary pressures mean that the FOMC will have no choice but to try and curb the rise in prices.
What does this mean? It means that commercial real estate owners who have been benefitting from increased cash-flow over the past 5 years from low-rate, variable-rate loans, have a golden opportunity to lock-in historically low interest rate loans on their commercial properties now. Banks are still competing for commercial loans as transaction volume coupled with the large amount of capital seeking real estate backed loans is making for very attractive loans from many of the smaller commercial real estate lenders. You just have to know where to look.