The commercial real estate (CRE) market has seen few changes during the year’s first quarter. Vacancy rates were on the rise, and rent growth continued to decelerate across all market sectors. Specifically, the office vacancy rate reached new record highs, reaching almost 14%, while fundamentals in both the retail and industrial sectors decelerated. These trends reflect the persistent trends and challenges from the previous year that continue to influence the market.
Interest rates remain steady at 5.5%, and the effects of hybrid work impact on office spaces are factors that are not going away overnight. In the meantime, the U.S. economy started to slow down after previously exceeding expectations. Nonetheless, consumers continue to spend, helping to keep the economy resilient.
Read the full April Report from the National Association of REALTORS – HERE