:quality(75))
YouTube/TheStreet
The pending interest rate hike looms closer, leading to industry-wide speculation about its impact. (And you already know REITs don't like it).
However, investors need not worry, Phil McAndrews, global real estate CIO of the $32B fund TIAA-CREF Financial, says. The market is more than capable of handling any interest rate jumps.
"The spread between Treasury rates and [cap rates]...is about 300 basis points right now," McAndrews says, adding the spread usually sits around 270 basis points. "So we already have a little room to absorb a rate hike in real estate.”
McAndrews says the improving employment picture is a strong indicator for real estate because it will make space easier to rent out. [TheStreet]
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