With interest rates high, transaction volumes low, and property prices generally on the decline, it’s safe to say that the commercial real estate (CRE) market is undergoing an adjustment period. The market adjustment has triggered a process referred to as “price discovery,” in which many buyers are sitting on the sidelines waiting for lower entry ... Read More›

As rent growth has softened across all asset classes, property owners and operators have increased their focus on limiting expense growth. However, this has proven difficult for some line items, as both property insurance, and repairs and maintenance (R&M) expenses have increased significantly over the last three years. In this edition of the ... Read More›

The commercial real estate (CRE) market is in a reset. Deal activity is down, and property prices are declining. We recently examined what clues history can provide about the potential length and depth of CRE price declines. Today, let’s examine what current CRE fundamentals can tell us about where we are in the process of resetting. Read More›

When most people think of a loan, they think of a bank. Banks take deposits from customers in return for interest payments or other services. The bank then invests those deposits in loans, such as commercial real estate (CRE) loans, and securities that pay a higher interest rate than the bank is paying on the deposits. However, a bank is not the ... Read More›

Several indicators now point firmly to a broad cooling in commercial real estate (CRE) markets. The extent of the cooling, however, varies meaningfully by asset class and geography. Read More›

Several commercial real estate (CRE) fundamentals continued to soften in October. It was the second consecutive month where prices for multifamily, retail, and central business district (CBD) office sectors all declined on a month-over-month basis, though prices remain higher for all asset classes compared to October 2021. Read More›