National Property Sector Overviews

Coming off a period of heightened uncertainty resulting from the COVID-19 pandemic, there appears to be more visibility in the commercial real estate markets. Based on FTI Consulting's research, overall real estate sector highlights and a more detailed discussion for each of the four core property types (office, industrial, multi-family apartment and retail) are as follows:

Overall

• Rising interest rates will likely reduce spending (consumer and business) and result in lower investment activity.
• Operating expenses will rise.
• Higher expenses will impact tenants' ability to absorb higher rents.
• The rising cost of construction will likely result in contracts or projects being delayed or cancelled.