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  • Writer's pictureAnvers Capital Partners

Current State of the Commercial Real Estate Market in 8-Bullet Points July 2023

Summarizing a new report by PWC, here is the current state of the commercial real estate market in 8-bullet points:

  • Commercial real estate deal activity is moderating due to challenges caused by shifts in monetary policy to combat inflation, interest rate hikes, and changes in how people live, work, and play post-pandemic.

  • Despite the challenges, there are still opportunities for successful dealmakers, with green shoots evident across all subsectors, including the office sector.

  • Transaction volumes in the first quarter of 2023 were down across all subsectors compared to the previous year.

  • The financing landscape has changed, with increased debt costs leading dealmakers to take more time to assess the right debt/equity mix and explore alternative financing routes.

  • Real estate professionals are focusing on long-term strategies to create sustainable value within current constraints, embracing digital solutions and sustainability.

  • The market is experiencing regulatory uncertainty, with changing policies impacting real estate from land use to environmental priorities and taxes.

  • Real estate service providers are seeking complementary and synergistic offerings to establish recurring revenue streams, and investment and alternative asset managers are looking to add new product offerings to compete with mega managers.

  • Market participants are seeking to innovate and reinvent their offerings to continue growth trajectories amid market volatility.

What are you seeing in your market?

See the full PWC report below!


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