RXR EVP, Chief Strategy Officer and Head of Equity Capital Markets, Scott Crowe, spoke with Commercial Property Executive about how the commercial real estate market is adapting to a higher-for-longer interest rate environment. With nearly $1 trillion in CRE debt maturing this year, elevated financing costs and shifting valuations are forcing investors to move beyond waiting for rates to fall and instead find ways to create value in the current environment. The market reset is creating opportunities through discounted acquisitions, alternative capital solutions and operational improvements, with disciplined underwriting becoming increasingly important as investors prepare for a market where today’s interest rate environment could become the new normal.
“All this is leading to less capital flows as investors try to find areas where they perceive higher returns,” said Scott Crowe. “And as we go through this wave of refinancing, I think the real opportunity is to be a lender or try to find property investment opportunities with NOI growth.”
