2023’s commercial real estate outlook is turbulent, but with opportunity occurring along the dislocations. Overall commercial property prices are down 13% from 2022’s peak, 450 billion dollars of loans will be due in the next four years, and demand for office space has decreased 15% per employee due to the popularity of the home office. Office occupancy has flattened at 47% in the wake of Covid-19. Many investors are stopping investments until the market corrects, but the United States is still widely considered stable, outperforming other regions by a 10. 4% average.
The twenty one trillion dollar market is turbulent, but there is new opportunity in the turbulence– data centers and industrial real estate are expected to remain resilient, multifamily investors will continue to be interested in suburban homes, and tenants are looking for areas with larger windows and more shared space. In New York specifically, landlords are converting unused office space into residential units and demand for industrial space is expected to continue.
Silverstein Properties is raising $1.5 billion to convert Manhattan offices to residential units. In addition the hotel sector is expected to continue thriving, with a 49% expected tax revenue increase from 2022. Learn more about commercial real estate in Orange County, NY in the infographic below:
Source: ChessRealtors.com
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