Saurage Rotenberg Commercial Real Estate
11.03.17For REITs, rising interest rates may mean a bumpy ride ahead

Article submitted by Carmen R. Austin, MBA, CCIM, Associate Broker and Retail Specialist for Saurage Rotenberg Commercial Real Estate

Written by Stuart Eisenberg | September/October 2017

The Federal Reserve has a clear message for the market: Buckle up, we're hitting the gas. The Fed's latest rate hike in June 2017 was its third since December 2016, with the goal being to raise the Federal funds rate to  3 percent by 2019. An additional increase is anticipated before the year ends. Currently at 1.25 percent, interest rates today may not be sky high, but they are a far cry from their seven-year stint at 0.25 percent - a rate of effectively zero.

After the prolonged stasis period, the market must now adjust to the changing rate of Federal funds. Real Estate Investment Trusts are among those evaluating the impact of rate increases to their profit margins - with the largest players in the sector factoring in rising interest rates as a risk in the year ahead.

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Carmen R. Austin, MBA, CCIM has been a practicing commercial real estate broker since 2001. She is a graduate of the Louisiana State University (LSU) E.J Ourso College of Business and the LSU Flores Masters of Business Administration (MBA) Program with a specialization in Entrepreneurship and Real Estate Finance. Her experience includes past employment as Regional Director of Leasing at Commercial Properties Realty Trust, the for-profit arm of the Baton Rouge Area Foundation.  Carmen is a graduate of the Jay W. Levine Leadership Development Academy, Class of 2011, and served as the 2010 President of the Louisiana CCIM Chapter.  She currently serves on the National CCIM Institute Board of Directors and the CCIM Institute Education Foundation Board of Directors.

Carmen's affiliations include Louisiana REALTORSGreater Baton Rouge Association of Realtors Commercial Investment Division, International Council of Shopping CentersCommercial Real Estate Women,Certified Commercial Investment Member Institute, National Association of REALTORS, and Urban Land Institute. She is also an active volunteer on the Board of Directors for the Baton Rouge GalleryLSU MBA Alumni AssociationJunior Achievement of Baton Rouge, and the Junior League of Baton Rouge

Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).

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H.N. “Hank” Saurage IV, CCIM / Saurage Rotenberg Commercial Real Estate, LLC / Licensed in Louisiana and Mississippi