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Struggling Office Market Not the Whole Story for CRE Outlook

Federal Reserve Chairman Jerome Powell recently expressed that commercial real estate could drive bank losses, but asset classes other than office continue to perform well, especially in industrial and multifamily sectors.  When discussing commercial real estate trends, this article explains the importance of taking a nuanced view.

Although office vacancy rates have caused lenders to pull back on lending across all property types, buyers and sellers are working together to put deals together with less leverage and more equity, making the real estate market very attractive for sources that have capital to deploy (whether as an investor or lender). 

The office market is not performing well. And there are some concerns there. But outside of the office market, we have really strong fundamentals. Frankly, some of the strongest fundamentals that we've experienced on record, particularly in the industrial space and the residential space.

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real estate development & finance, real estate