Preventing Rising Interest Rates From Derailing Your Commercial Purchase

11/05/2026 09:47 AM Mark Goodman

Rising interest rates are causing a growing number of commercial transactions to fall through. When interest rates go up, so too does the overall cost of financing a loan for a commercial property. So how can you keep rising interest rates from derailing a deal? Let’s go over some options in today’s blog.

Whether you’re buying or selling commercial property, it’s helpful to understand what type of concessions could be made to keep a deal on track in the face of rising interest rates. Some options include:

Raising Additional Capital - Taking on additional investors or attempting to crowdsource more funding can help you avoid the higher costs associated with a loan at current rates.

Renegotiated Deal - The most common option is to ask the seller to come back to the table and make your case to them. Neither side wants the deal to fall apart, but if the rising rates no longer make the deal feasible, you’ll want to let the seller know.

Work With An Experienced Title Team - We always tell clients that we’re not going to rush through an acquisition because there are a number of checkpoints that need to be addressed to limit their risk exposure in the lead up to closing. At the same time, if you work with industry professionals with a great deal of experience handling matters during the due diligence stage, you can close faster on a property. Shorter closing times leave less opportunities for interest rates to jump greatly.

Take Your Time When Selecting A Property - Rising interest rates mean more buyers are priced out of the market, and in response, property values should slowly start to come down. If you can be patient, commercial property price decreases should make buying a little more affordable despite the rate hikes.

Be patient with the market, but be ready to move quickly with the help of an experienced team if the right opportunity arises. For assistance with your first or your next commercial acquisition, reach out to the team at Commercial Partners today at (612) 337-2470.