The Federal Reserve’s quarter-point rate increase adds pressure to commercial real estate financing—but it does not eliminate good transactions. Borrowers approaching a maturity should evaluate debt-service coverage, refinancing exposure, available equity, liquidity, and exit
Original publication. Historical wording and references are retained.
Higher Rates Put More Pressure on the Structure
September 17, 2026
The Federal Reserve’s quarter-point rate increase adds pressure to commercial real estate financing—but it does not eliminate good transactions. Borrowers approaching a maturity should evaluate debt-service coverage, refinancing exposure, available equity, liquidity, and exit strategy as early as possible.
Depending on the transaction, potential solutions may include bridge capital, recapitalization, additional equity, seller participation, or a different combination of debt and terms.
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https://lnkd.in/p/es8uz8Cv