Canceled Contracts Pile Up As Real Estate Buyers, Lenders Reckon With Rising Rates
Some commercial real estate deals are falling apart across the country as the market reels from the highest interest rate environment in over a decade and clouds of economic uncertainty are gathering.
Both construction loans and financing to purchase properties will get more expensive with the Fed’s decision.
As borrowing costs rise, the prices for everything from out-of-favor assets like office buildings and retail to warehouses and apartments are declining as buyers get nervous about future values.
“No one’s immune,” said Eddie Lorin, an affordable, workforce and mixed-income housing developer who co-founded California-based Alliant Strategic Development. “Everybody is getting repriced.”