1203 - Commercial Properties Are Set To See Another Half Trillion-Dollar Wipeout This Year by Moriah Costa
BiggerPockets Daily
English - January 30, 2024 07:00 - 9 minutes - ★★★★★ - 284 ratingsInvesting Business Entrepreneurship real estate success financial freedom financial independence wealth wholesaling money landlord realestate real estate investing Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
The commercial real estate market has been faced with headwinds for years, and 2024 may not be any different. With weak growth in the sector and a high interest rate environment that has pushed the cost of ownership to new heights, the CRE space is expected to continue falling in value this year.
In fact, property values could fall another 10% after falling 11% last year, according to Capital Economics’ deputy chief property economist Kiran Raichura. He sees growth softening “as the industrial rent boom gives way to more ‘normal’ growth rates and apartment rents flatline,” he wrote.
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The commercial real estate market has been faced with headwinds for years, and 2024 may not be any different. With weak growth in the sector and a high interest rate environment that has pushed the cost of ownership to new heights, the CRE space is expected to continue falling in value this year.
In fact, property values could fall another 10% after falling 11% last year, according to Capital Economics’ deputy chief property economist Kiran Raichura. He sees growth softening “as the industrial rent boom gives way to more ‘normal’ growth rates and apartment rents flatline,” he wrote.
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