Commercial real estate can be expected to perform well this year despite the prospect of higher interest rates, according to the National Association of Realtors.
While interest rates are expected to broadly rise by about 75 basis points, they will still be low compared to historical levels and should not cause a severe decline in investment activity and the ability of companies to service their debt.
Bottom line: CRE's underlying demand fundamentals should more than mitigate the impact of the slightly higher interest rates in 2022, according to NAR's 2022 Commercial Real Estate Outlook report.
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