Slower march to recovery in 2024
In this final month of 2023, the commercial real estate industry is facing some challenging headwinds and clients are struggling to make sense of what the current conditions mean for their 2024 forecast. Will the market begin to rebound in 2024? And if so, when?
To gauge how a broad swath of LightBox clients across the environmental due diligence, appraisal, lending, brokerage, and investment segments are responding to today’s ‘higher for longer’ interest rate environment, we launched a Q4 Market Sentiment Survey in what is typically the busiest quarter of the year. Survey responses reveal a palpable shift to a more subdued outlook compared to our mid-year observations. Our five key highlights provide insights into what professionals across a wide range of CRE functions are thinking about the new year.
Highlights from the report:
- The Bears Far Outnumber the Bulls
- Property Investment Expected to Remain in Limbo
- Distress is Surfacing on a Slow Trajectory
- Wave of Loan Maturities Is a Top Concern
- “More of the Same” in 2024
About the LightBox Fall Market Survey
Between October 6 – November 3, 2023, LightBox polled their clients and prospects in the commercial real estate (CRE) industry on their opinions on CRE distress, loan maturities and the 2024 forecast. More than 80 percent of the several hundred respondents identified their professions/industries as appraisers, environmental due diligence consultants, and CRE brokerage. Additional respondents included lenders and CRE investors.