Experts Weigh In on Interest Rates and Outsourcing

NEW YORK CITY-”Interest rates are driving the value of assets,” commented Richard Cohen of Capital Properties during a panel discussion, moderated by Real Estate Media Inc. president and CEO Jonathan Schein, that delved into a broad range of topics including the interest rate situation, offshoring/outsourcing, the industrial arena as well as the Downtown revitalization initiative. The forum was just one part of a two-day TCN Northeast Regional Conference held at the Helmsley Hotel in Midtown.

The Archon Group’s Michael Nachamkin noted that the interest rate climate made spreads better helping developers “juice” profits. However he cautioned, “when interests rates go up, that climate will change.”

Cohen noted that sophisticated international investors have told him they think as soon as interest rates go up, real estate will be “a disaster.” He added, “I don’t have a crystal ball to tell you when rates will go up, but they will have to.”