Real Estate
US Commercial-Property Sales to Fall 5% Next Year, CBRE Says in Reversal of Forecast
- Sales will decline to slowest pace since 2013, CBRE estimates
- High rates, Treasury yields holding back real estate investors
This article is for subscribers only.
Commercial-property transactions are expected to fall 5% next year, according to CBRE Group Inc. — a reversal of the brokerage’s previous forecast for 15% growth — as higher US interest rates chill deal-making.
Total deals will fall to $409 billion this year and further decline to $389 billion in 2024, the slowest pace of transactions since 2013, when the economy was still recovering from the financial crisis, CBRE said. Transactions had soared to a record $850 billion in 2021, before the Federal Reserve started raising rates to cool inflation.