The Chief Economist: A Brighter Day on the Horizon for U.S. CRE
In early 2024, a nascent sense of optimism surrounds the commercial real estate (CRE) market. The outlook for this year seems brighter than during the last two years when the market faced significant headwinds, namely in the form of higher interest rates. With the economic expansion proceeding, inflation abating, and the Fed on the precipice of cutting interest rates, sentiment is slowly swinging positive. But is it justified? Our outlook this quarter continues to argue for cautious, but not unbridled optimism. The environment is undoubtedly improving, yet improvement should unfold over the course of the year. We expect better performance for CRE in the latter half of 2024, but the first half should help set the stage for those better times.
