Comment on Higher interest rates, oversupply, and rising costs have battered commercial real estate. Will 2025 be different?

Higher interest rates, oversupply, and rising costs have battered commercial real estate. Will 2025 be different?

iStock; Rebecca Zisser/BIHurt by higher interest rates, commercial real estate should see a modest rebound in 2025.Lingering inflation, however, could complicate the recovery by pushing up long-term interest rates.Industrial warehouses, a star of the sector, are poised to stand out in 2025.The commercial property sector has had a bruising few years as rising interest rates have pushed down values, complicated refinancing deals for hundreds of billions of dollars of expiring mortgages, and stymied investment.In the office market, the situation has been even more severe as hundreds of millions of square feet of space across the nation face accelerated obsolescence.

 

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