Credit: selensergen/Adobe Stock About That Hedge: How Borrowers and Lenders Have Gotten Creative With Hedging Commercial Real Estate Loans in a Heightened Interest Rate Environment
"While real estate publications and practitioners have written ad nauseam about the impacts of high interest rates on the commercial real estate industry, this article focuses specifically on how borrowers and lenders have gotten creative in negotiating and structuring interest rate hedges (namely interest rate caps), or avoiding them altogether."
September 17, 2024 at 10:00 AM
6 minute read
Interest rate hedging has long been a staple of floating rate commercial real estate loans. Though they are not the only solution, interest rate cap agreements have become the most popular option in the industry.
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