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Industrial Sale-Leaseback Deals Continue To Boom Despite Rising Interest Rates

Owner-Users More Willing to Cash Out Real Estate Due to Increased Debt Burdens, Recession Fears
CBRE Investment Management's acquisition of DHL’s distribution center in Lebanon, Pennsylvania, was one of the largest industrial sale-leasebacks of 2022. (CoStar)
CBRE Investment Management's acquisition of DHL’s distribution center in Lebanon, Pennsylvania, was one of the largest industrial sale-leasebacks of 2022. (CoStar)
CoStar Analytics
December 29, 2022 | 7:16 P.M.

In response to the Federal Reserve’s rapid interest-rate hikes, mortgage rates on new commercial loans hit more than 10-year highs during the fall of 2022 and have remained elevated ever since. These higher rates have created a more challenging environment for brokers looking to finalize commercial property sales, and for investors looking to add properties to their portfolios.

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