More trouble awaits the commercial real estate market next year, and it comes down to weak growth and high interest rates that will push property values down even further, according to a new report.
Commercial real estate property values will fall another 10% next year, after falling 11% this year, Capital Economics’ deputy chief property economist, Kiran Raichura, wrote in a recently released outlook for next year. The economic research firm defines the market size as more than $5 trillion, using a 2022 year-end estimate. That means the 11% decline in value this year equates to roughly $590 billion while the 10% fall expected next year equates to $480 billion.
