Commercial Real Estate: Trends and Predictions

Commercial real estate experienced another year of impressive growth in 2022, and despite cyclical headwinds, including increased interest rates, inflationary pressures, and a recession, the outlook for 2023 is cautiously optimistic. Although it is likely that the US economy will experience a recession in 2023, forecasts suggest that any recession will not be deep.

Similar to many other industries, the commercial real estate market often experiences contradictory influences, and the past year was no different. Many aspects of the industry have returned to pre-pandemic, or close to pre-pandemic, norms (the hospitality sector being one example), while others (such as hybrid working and shifted retail needs) seem to have reached a new normal and permanently changed post-pandemic.