Press Coverage September 17, 2026

How the Fed’s Rate Hike May Affect Real Estate

Related professionals

Daniel J. Valenti

Daniel J. Valenti, a partner in Troutman Pepper Locke’s Real Estate Practice Group, was quoted in the September 17, 2026, Law360 Real Estate Authority article, “How the Fed’s Rate Hike May Affect Real Estate.”

  • Troutman Pepper Locke partner Dan Valenti also noted that increased rates means less net operating income, which means a lower debt service coverage ratio, or DSCR, a primary metric used to underwrite the financial health of a property and loan risk.
  • “For deals in the pipeline where the lenders did not previously take into account the possibility of rate hikes, those loans risk being resized,” Valenti said. “For in-place loans, the pressure on the DSCR may push the DSCR down so low that cash management provisions would be triggered, giving the lender more control over how cash at the property is applied, and for some borrowers may mean that they don’t meet the DSCR hurdles required to be achieved in order to extend loans facing maturity.”
Insight Industries + Practices

This just in

See all insights

Firm Events

Horizons Legal Ops Summit – Houston 2026

October 15 – 16, 2026
Troutman Pepper Locke Houston Office
600 Travis Street, Suite 2800, Houston, TX 77002

Speaking Engagements

NAWL GCI

October 15, 2026  |  4:15 PM – 5:15 PM ET
InterContinental New York Barclay
111 East 48th Street, New York, NY 10017

Speaking Engagements

Inside the Tribunal: Managing the Case and Reaching the Decision

October 15, 2026  |  3:30 PM – 4:50 PM ET

Sponsored Events

Venture Atlanta 2026

October 14 – 15, 2026
The Woodruff Arts Center and Atlanta Symphony Hall

See all insights