How The Fed's Rate Hike May Affect Real Estate

The Federal Reserve’s latest rate hike could shape how real estate deals are financed, evaluated, and advanced.
 
Danny Diaz Leyva, Leader of Day Pitney’s Florida Real Estate Practice, spoke with Law360 about how the first interest rate increase since 2023 could affect commercial real estate financing, refinancing, transaction activity, and investment strategies. As market participants prepare for the possibility that rates will remain higher for longer, Danny noted that some borrowers may be motivated to refinance or lock in capital sooner.
 
“For well-capitalized investors, however, periods of dislocation can also create opportunity, particularly as refinancing pressure begins to separate fundamentally strong assets from those that were dependent on inexpensive leverage,” he said.
 
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