Rising interest rates and the shift to hybrid and remote work models have significantly impacted commercial real estate as an investment. As commercial tenants downsize or reconfigure their office footprints in response to the need for less physical space, the income streams from office leases are decreasing as well. Meanwhile, property owners are facing rising costs from inflation, including higher costs for maintenance, taxes, labor and utilities, not to mention any floating-rate debt.
U.S. Economic & Property Market Perspective
May 26, 2023
