CBRE: GDP Shrinks for Second Consecutive Quarter but U.S. Not Yet in Recession

With the recent increase by the Federal Reserve this week, I found this article from CBRE informative as a "forecast" on potential impacts to the commercial real estate market. In particular, I thought the following opinions/predictions were noteworthy:

1. CBRE predicts that a recession will take hold late this year and early next.
2. CBRE expects that more challenging economic conditions later this year and next will weigh on real estate market fundamentals and investment volumes. Rapidly increasing interest rates and subdued economic growth will weigh on commercial real estate fundamentals and investment volumes this year and next. Segments of the multifamily, hotel and retail sectors that rely on budget-conscious consumers will be particularly affected.
3. CBRE forecasts the federal funds rate will peak at 3.75 percent next year.

This article was submitted by Marc Pfleging, Scannell Properties. If you would like to submit content or write an article for the Real Estate & Land Use Section, please email Deneen Fitzgerald at dfitzgerald@indybar.org.

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