“Money costs more, therefore interest rates are going up”.
– Economy insights provided by our Founder and President Dan Cawley.
What does this mean for you and your business? On a recent internal company call, Cawley Commercial Real Estate experts discussed and navigated their way through why interest rates are exploding. Our advisory team breaks down the fluctuating market and provides insight in today’s ever-changing economy.
As you may already know, interest rates are rising, but what you may not know is that equity rates (cash needed to close a transaction) are rising to 25%-30%, at times as high as 35%, depending upon the specifics of the transaction including but not limited to; tenant(s)’ credit, lease rate, product type, etc.
“Banks will look for risk mitigation to get more equity in the deal,” says Dan Cawley.
Pricing values are currently at all time highs therefore lenders are uncomfortable with the difference between real values and current values and making you pay more because of it.
We, as brokers in the market, are on the front lines every day and we know where your particular deal may align with a bank or lender. Because we work to understand your business, we can guide you to the preferred lender and help assist you through the whole process.
Please contact one of our trusted advisors today!