Rising interest rates increase borrowing costs for real estate investment trusts (REITs) like Centerspace, impacting their ability to finance new acquisitions and developments, and making fixed-income investments more attractive to investors.

Strong US employment figures and economic growth drive demand for rental housing in Centerspace's target markets, supporting occupancy rates and the potential for rent increases.

Inflationary pressures, partly driven by higher oil prices from the Middle East conflict, can increase operating expenses for apartment communities (e.g., utilities, maintenance) but may also allow for rent adjustments, influencing net operating income.