What Does the Future of Commercial Real Estate Look Like?

The 2023 commercial real estate outlook indicates there may be challenges ahead. Retail is at a crossroads, and the future of office space is unclear. Plus, supply chain issues persist, and inflation is near 40-year highs, prompting the Fed to steadily increase interest rates.

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But there are a few bright spots in the commercial real estate forecast. Let’s take a look.

When it comes to real estate fundamentals—cost of capital, capital availability, property prices, vacancy levels, leasing activity, transaction activity, and rental rates—most respondents (66%) expect improving or stable conditions for next year. Respondents point to leasing activity, tightening vacancies, and rental growth as having the strongest potential for improvement.

Additionally, considering whether your business has the right technology and tools it needs to work as efficiently as possible during another external shock, or if it moves to an increasingly remote model, is another key consideration.
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