The first quarter of 2023 presented an uncertain start to the year, as occurrences in the financial sector and macroeconomic factors sent a cascade of concerns throughout the broader United States economy. Despite somewhat steady property valuations, some of this concern fell onto the shoulders of commercial real estate, pausing deal activity and requiring investors to more heavily scrutinize each acquisition before taking action.
The cost of capital increased again resulting from increased interest rates, and we’re just starting to see the financial pressure cracks from the Fed’s aggressive anti-inflationary measures and the evaporation of stimulus measures. However, real estate fundamentals in many sectors and markets remain solid. These times of uncertainty and ongoing talk of a recession may unearth long-term, value-add opportunities for watchful commercial real estate stakeholders.
Comprehensive, data-powered information is an essential tool in investor and broker arsenals. We aim to provide the most valuable insights and trends to shed light on the undercurrents of commercial real estate activity, with an eye toward the sector’s future. Our quarterly overview report dives into transaction and leasing activity on Crexi throughout Q1 2023, considering quarterly metrics and year-over-year data, so that CRE stakeholders can approach any coming storm with the most informed strategies possible.