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.
Higher Interest Rates, Oversupply, And Rising Costs Have Battered Commercial Real Estate. Will 2025 Be Different?
dgeiger@businessinsider.com (Daniel Geiger), Business Insider
Wed, 12/25/2024 - 2:00am
Topics: istock rebecca zisser/bihurt federal reserve resilient mortgage bankers association jamie woodwell tomasz piskorski columbia business school richard barkham donald trump investors jim costello msci howard lutnick wall street newmark group department craig meyer americas barkham e-commerce business insider fed treasury mba in cbre trump commerce meyer meyer jll commercial real estate real-estate space long-term feet square market demand supply sector sales expect billion zones years year office million loans growth short-term projects debt research warehouse quarter activity billions lead economist jumped pandemic dollars face hundreds property relief complicate cuts modest rebound percentage warehouses decade added economic vacancy absorbed tied issues record total firm expected positive warned roughly yield lowest opportunity
BING NEWS:
- Higher interest rates, oversupply, and rising costs have battered commercial real estate. Will 2025 be different?
Commercial real estate has been battered by higher rates. A steady economy, falling rates, and new president could lead to an upswing in 2025.
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