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Updated over 3 years ago,

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Matthew Packard
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Inflation concerns with commercial

Matthew Packard
Posted

Is anyone else concerned about upcoming inflation with regards to commercial properties? For example, if interest rates substantially increase over the next 5 years, a typical commercial balloon loan may need to be refinanced at a much higher rate. If you're locked into a lease with a single tenant, rent would not substantially increase. Conversely with a multi-family, rent may be easier to increase (multiple one-year leases) to keep pace with increased interest rates. I'm curious what happened during the 1960s/1970s periods of high inflation.

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