Ten years ago, it was very easy to get a loan. Property values combined with low interest rates and loose underwriting standards created an unsustainable “golden age of CMBS originations.” Now, all of those loans originated before the Great Recession are approaching maturity but in a very different refinancing landscape.
When deciding whether or not to refinance, many commercial real estate owners ask themselves when will interest rates go up. However, that’s not the right question to ask. Interest rate timing isn’t the key determinant in deciding to refinance — IRR is.
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