The big banks, research, and advisory firms are chiming in on the state of the commercial real estate sector, with forecasts and assessments ranging from a price decline “worse than in the Great Financial Crisis” to challenges that are “manageable,” amid high interest rates and tightened credit that’s both pushed the cost of borrowing up and seen defaults rise.
There seems to be a consensus that the office sector is most at risk, given the widespread shift to working from home that emerged from the pandemic, which has largely impacted demand. However, how that will affect the overall market, depends on whom you ask.
