
Markets in Focus :: Commercial Real Estate Q2 2023
July 5, 2023
U.S. commercial real estate investment activity is slowing as the nation’s economy slips toward a possible recession. Deal volume will decline 15% this year. In a CBRE survey, 60% of investors indicated they would reduce purchases in 2023, most by more than 10%, while only 15% of respondents stated they would increase their activity.
The outlook for the major commercial real estate categories contains few surprises and the data reflects the prevalent economic situations that have been thoroughly reported in this country. The slow return to offices and higher permanent levels of work from home and hybrid work arrangements are depressing the office market. High mortgage rates and stubbornly high single-family housing prices (propped up by cash buyers) are driving a strong multifamily commercial real estate market. And the recent extremely robust industrial market (especially for warehouse space) is softening as the economy slows and consumer spending declines after higher levels of pandemic spending.
Learn more in the latest Markets in Focus :: Commercial Real Estate report.
The views and opinions expressed within are those of the author(s) and do not necessarily reflect the official policy or position of Parker, Smith & Feek. While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it.
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