The go-to financing choices of CRE investors and developers are shifting as rising interest rates chase inflation amid clouds of uncertainty. 

"I think it's just indicative of some of the volatility that's currently in the market," David Loo, managing partner of middle-market capital provider Hudson Realty Capital, tells GlobeSt.com. "What's interesting is I think inflation and the Fed tightening and the spike in rates has caused some confusion in the market and it's had an impact on how lenders and borrowers are looking at it."

For example, HUD loans have seen a sharp increase. "We are a qualified HUD lender for healthcare and multifamily assets," says Loo, pointing to the jump from 2.25% up to 3.7% as of April 11, 2022. "It's great financing for specific asset classes like multifamily and healthcare. You can get long-term financing self-amortizing over a 30- or 35-year period. But the process can take 3 to 6 months before HUD will even look at your application. For healthcare, it's a little bit less for HUD to look at your application, but post pandemic, a lot of the healthcare industry hasn't fully recovered occupancy, which has made things a little more difficult."