Rising interest rates lower commercial property values?

[Jack B.]

I've read that Commercial Real Estate (CRE) is valued by it's NOI/Cap rate. As rents rise over time, it increases the property value, etc. However, it appears that as interest rates rise, it causes a hike in cap rates, thus lowering the property value. So when is a good time to buy Multi Family/Commercial real estate? It seems that there are many moving pieces to it's valuation compared to single family homes. I like the idea of increasing returns to scale that CRE/MF offer, but it seems like buying right before interest rates rise may not be the best move...?

https://www.forbes.com/sites/elyrazin/2016/01/07/i...

If a property owner has a net operating income of $1 million and a capitalization rate of 3.75%, for instance, an interest rate hike of just 0.25% will trigger a cap rate hike (and a lower property value) that results in a 5% rise in the loan-to-value ratio, which is a key measure of risk. This could potentially push up a loan from a high but acceptable LTV of, say, 75% to a riskier LTV of 80%, which means that the borrower's equity will be reduced to just 20% of an existing investment. In the pre-crisis bubble, many lenders were prepared to issue loans for particularly high LTVs.