The 10-year US Treasuries rate hit 5% this week and that has commercial real estate investors rightfully concerned, according to a new news video by Marcus & Millichap.
Because even though the Fed has likely concluded its cycle of rate increases, the commercial real estate sector could still face significant interest rate headwinds, according to John Chang, its National Director of Research and Advisory Services.
He explains that most real estate lending is based on the 10-year Treasury, and over the last 90 days, the 10-year has climbed 120 basis points to the upper 4% range. It closed at 4.961 on Wednesday.
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