How Will a Rise in Interest Rates Affect the Commercial Real Estate Market?

In the past couple years, overall interest rates have risen several times in the United States. According to many experts, they are likely to finally stabilize in 2020. However, they have already risen sufficiently enough in 2018 and 2019, and we cannot be sure that the same won’t happen by the end of 2020, or especially the year after.
With that in mind, the commercial real estate market needs to start preparing for a possible rise that can have significant effects. 
But what are those effects? How does a rising interest rate affect the commercial real estate market? If you want to know the answers, you’ve come to the right place, as this article aims to give you all the information you need. Let’s take a look.
How Interest Rates Affect Real Estate Values
For those who are unaware, interest rates, like the ones on Treasury bills and interbank exchanges, have a massive effect on the value of commercial real estate and all property, for that matter. 
That’s because they influence the ability of people to buy property by increasing or decreasing mortgage capital costs. However, that’s only one part. Interest rates also affect capital flows, supply and demand, and much more. When all of that is considered, we can conclude that interest rates have a profound effect on the commercial real estate market in a wide variety of ways. 
However, we are only interested in the higher interest rates and how they affect the commercial real estate market. And that is a ……