Given our lives the past few years it seems like risky business to try and make some predictions. Nonetheless, here are our commercial real estate predictions for the new year!
Rising interest rates will slow down building purchases as some business owners adopt a wait-and-see attitude.
Industrial sales and pricing will cool down and industrial lease rates will lower slightly and then stabilize.
Office building values will continue to decline and more buildings will head back to the lender, especially the Class B & C properties in the downtown cores.
The North Loop will remain healthy, continuing to attract retail and office users.
Hybrid work remains and offering flexibility will continue to be critical for retaining and attracting talent. Employers will also need to present a workplace that is interesting and adaptable. In addition, Class A buildings and nearby amenities will be key to bringing employees back into the office.
Generally, across all asset classes, cap rates will increase as the Feds continue to increase interest rates.
And, importantly:
People will continue to enjoy and cherish time together; the memory of the last few years fresh in their minds!!
Cheers to a wonderful 2023 for you professionally and personally!