What we know is that the commercial real estate (CRE) sector, like many sectors, faces significant near-term headwinds. Elevated recession risks, stubbornly high inflation, interest rate uncertainty, tighter lending conditions, financial sector stress—to name a few. But we also know that the CRE sector will invariably recover. In fact, historically, the strongest vintage years in terms of CRE returns are the ones that follow periods of dislocation and financial stress.
This report provides a glide path from here to there. That path will not be without challenge; it is therefore just as important to address the near-term challenges as it is to conceptualize the path to clear(er) skies. We seek to do both—address points of concern and risk head-on, all while maintaining a balanced outlook on the many opportunities for CRE investors in the next chapter.
Cushman & Wakefield’s Glide Path Report provides a synthesized view of the key themes and questions permeating the U.S. capital markets landscape. Many of the questions build upon an interrelated foundation—one that rests on the shoulders of inflation, monetary policy, banking and certainly on CRE price discovery, lender and investor sentiment.
Glide Path Timeline for Key Indicators
We've classified the key themes facing CRE capital markets within the following categories: