Commercial Real Estate Forecast
Of note on the above chart is the substantive decrease in loan volumes as measured in total dollars.?2022 for example shows a pullback of 10% in total Loan Volume to $804 Billion from 2021 which?came in at $894 Billion. As a point of?reference, 2021 was a sizable 45% increase in loan volumes from 2020. Total Loan Volume is projected to increase 32% in 2024.??
While much of the activity over the past two to three years has been pandemic driven, we're also seeing some systemic changes within specific sectors like Office where the dynamic around remote work continues to evolve the supply and demand matrix.??
Specific to Multifamily, the pace and delivery of new product in 2023 is expected to put downward pressure on both rental rates and values but the Asset Class, generally, has proven extremely resilient and reliable through tough parts of the cycle.
?The largest challenge to getting deals done right now is the spread between bid and ask which becomes exacerbated?in a rising interest rate environment.?Deals continue to get done, but the market is not nearly as "frothy" as the past 18-24 months.