Article submitted by Michele Casi, CPM, Associate Broker for Saurage Rotenberg Commercial Real Estate
Written by Ely Razin | April 5, 2017
With the Federal Reserve raising its benchmark short-term interest rate in March for the third time since December 2015 and two more rate hikes expected by the end of 2017, interest rates are becoming an increasingly relevant factor in analyzing the near-term future of U.S. commercial real estate.
Higher interest rates make borrowing more expensive for owners, which can have a constraining effect on the commercial real estate market. All else being equal, cap rates will go up and property prices will come down. Yet higher rates also typically signal a stronger economy, which tends to be associated with a stronger real estate market.
(For more on the various ways interest rates can affect commercial real estate, see this CrediFi primer on the subject.)
Michele Casi has been practicing commercial real estate since 1996. Michele was the owner/ broker of Casi Real Estate LLC for many years and joined Saurage Rotenberg Commercial Real Estate in 2017, specializing in the sale and leasing of commercial real estate. She has an extensive background in management and disposition of Real Estate Investment Trust (REIT) portfolios for major companies such as Trammell Crow Company, Brookfield Asset Management and as an Associate Director for Jones Lang LaSalle. Michele holds an Associate Broker’s license in Louisiana and Mississippi, as well as a Certified Property Manager (CPM) designation from the Institute of Real Estate Management (IREM).
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).
