Rising Interest Rates Pressure Commercial Property Sector

The Wall Street Journal reports that two of the largest nontraded real-estate investment trusts (REITs) have restricted withdrawals after a sharp rise in redemption requests. Though the number of requests is still small, large investors and many financial firms are worried about reduced demand for office space. They have also expressed concern that interests rates will have a negative impact on property values, which “need to come down,” according to Barings’ head of U.S. real estate acquisitions Joe Gorin, who said, “The question is by how much.”

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