Interest rates would rise likely in the event of 1) inflation or 2) strong economic growth. typically, in an inflationary environment, or during periods of strong economic growth we are able to collect higher rents as cost of living increasing. the same would apply in the inverse; weaker economic situations would have implications for occupancy and rent growth, however, lower interest rates would be likely reducing our interest burden. in most cases, especially in periods in which we are vulnerable to interest rate rises, we prefer to use long term, fixed rate debt which serves as a hedge against inflation.