2024 Commercial Real Estate Forecast

In 2024, the commercial real estate market is poised for opportunity.

Economic indicators play a pivotal role in determining the health of the commercial real estate market. As we move into 2024, the global economy is showing signs of recovery from the impacts of recent disruptions. More favorable economic conditions and increased consumer confidence, are likely to stimulate demand for commercial properties.

Additionally, interest rates have decreased since the peak in 2023, and the Fed has forecasted rate cuts in 2024. The lower cost of capital will hopefully bring more sellers to the table. As more owners consider selling, and inventory increases, buyers, like us, will be able to continue transacting.

As always, operations will be key. We will hone in strategies to increase our income, for example mandating tenant insurance and utility fees. We will also focus on strategies to decrease our expenses, such as installing water conserving products and enhancing common areas to reduce turnover. Future newsletters will expand on these important concepts.

The commercial real estate market provides investors like all of us the opportunity to realize real cash flow on an appreciating asset, while realizing tax benefits.