Investors that swooped in on South Florida’s multifamily boom now face elevated interest rates, high insurance costs and plateauing rents. Compounding the problems are inflation, which has prompted rent delinquencies, and a hefty development pipeline that’s slightly tempered demand, prompted concessions and led rents to plateau or slightly decline in some submarkets.
During a January 25 networking event in Charlotte, North Carolina, Katten and Cushman & Wakefield partnered to provide CRE thought leaders an opportunity to discuss their insights on how interest rates, economic uncertainty, job growth and even artificial intelligence will affect the commercial real estate industry in 2024.
What is the “economic hurricane” headed CRE;s way? Millions of dollars of low-cost corporate debt are maturing over the next three years that will have to be refinanced at today’s significantly higher interest rates. This will cause enormous financial pain. But this is not all “doom and gloom” The flip side of economic crisis is opportunity.
