How Do I Refinance Commercial Real Estate in High-Rate Environments?

Refinancing commercial real estate (CRE) in high-rate environments demands a focused, strategic approach. Rising interest rates reduce loan proceeds, tighten debt service coverage, and increase costs—making it critical to navigate refinancing with expert guidance. Beyond replacing debt, refinancing can optimize your capital structure, strengthen long-term positioning, and safeguard asset performance.

Why Refinancing in High-Rate Markets is Complex—but Worth It

When interest rates rise, refinancing becomes more nuanced. Borrowers must not only navigate tighter credit but also evaluate how higher rates affect leverage, valuations, and investor returns. However, this environment also creates openings to rebalance structures, replace inefficient capital, and proactively manage risk.

Key refinancing strategies include:

Scenario-Based Modeling: Analyze multiple refinance options under different rate scenarios to find the best risk-return balance.

Capital Stack Restructuring: Swap mezzanine or preferred equity with senior debt—even at higher rates—to reduce blended capital costs and unlock value.

Bridge-to-Perm Execution: Structure short-term loans that offer flexibility while waiting for market conditions to improve.

Lender Negotiations: Leverage strong lender relationships and market insights to negotiate favorable terms despite higher rates.

Refinancing Strategies Tailored to CRE Owners

Blend-and-Extend Structures: Combine existing loan terms with new capital at higher rates, spreading cost impact over time.

Refinancing with Promote in Mind: Restructure to unlock promote eligibility while managing debt costs effectively.

Refinance-Plus Strategies: Add capital for upgrades or repositioning alongside refinancing to boost value and future refinance options.

Benefits of Expert-Led Refinancing

Working with a debt advisory firm can deliver significant advantages, especially when navigating a high-rate cycle:

Customized Refinancing Roadmap: Tailored plans aligned with your cashflow, investors, and portfolio goals.

Faster Execution: Time is money. Advisors streamline the process, reduce back-and-forth, and ensure lender engagement is proactive.

Better Outcomes: From loan proceeds to pricing and covenants, advisors know where to find efficiencies that deliver real value.

Why Defease With Ease | Thirty Capital is Your Trusted Refinancing Partner

With over 25 years of CRE debt expertise, Defease With Ease | Thirty Capital guides clients through refinancing in any environment—including today’s high-rate market. Our proprietary platform-driven advisory model delivers real-time insights, custom modeling, and trusted lender relationships to help you optimize your capital stack, reduce costs, and protect investor returns.

Unlock the opportunity behind rising rates. Connect with a capital markets advisor today.

“We appreciated your patience as you explained very clearly each step of a highly technical process and made yourself available when we needed you to answer questions or provide information. Your efforts made the process seem flawless.”

“Thirty Capital Financial provides true turnkey service. We are a very hands-on client, and the group has met our expectations for process management, cost efficiency, and timing every time. Thirty Capital Financial provides an objective, expert service that helps us meet our transaction goals.”

“Your expertise was critical in making this transaction run smoothly from start to finish. Your knowledge and professionalism made this transaction seamless. You took what could be a complicated transaction and made it easy!”

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