What will interest rates look like for the next 20 yrs, will lease rates be able to match the increases?

Considering buying an industrial property with subdivisions for lease. I would be occupying a space in the building. How concerned are buyers about the interest rates since they have no where to go but up? Generally speaking, will lease rates be able to match these increases over a 20-25 yr mortgage? Thanks
In Buying Property - Asked by Kevin H. - Jan 5, 2012
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Answer(s)

Chris R.
Broker/Agent
Denton, TX

2 widely separated questions. What will interest rates look like for the next 20 years AND will lease rates be able to match increases....... Wish I had a crystal ball ....... Interest rates.... for sure will rise from where we are now. To what point - again the crystal ball. Politics, world economy, government, wars throughout the world, price of gas, etc., etc. - all too much to try and predict. Wil llease rates be able to match the increase.... without knowing your market impossible to attempt to guess site unseen. Consult a seasoned commercial real estate broker active in your area to help ponder on lease rates over the next 20 years relative to market, demand, how many properties might be built, how many square feet are needed in that time frame vs what there is now, condition of your property, growth patterns, etc. all come in to play.

Jan 5, 2012
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Brad L. K.
Broker/Agent
Columbus, OH

Great answer. The tax assessed value is never a good valuation method, consult with a good commercial real estate broker in that market to get the accurate value.

Jan 19, 2012
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