Lastly, the demand effect may even be more acute today than in a “normal” market because high interest rates have suppressed supply of available homes. 

If you want a restaurant in there, typically, as the landlord, you are footing the hood system, walk-in cooler/freezer, fire suppression and overall fixture work for the tenant.  

Do folks think the rent decreases at the large multifam properties will eventually suppress the rents on the single fam and small multifam properties?

@Wayne Brooks Do the outstanding hoa dues suppress values at auction for first mortgage foreclosures?

The only exception I found is a court case in NJ that related to suppression of a gun search and did say tenants in a boarding house had an expectation of privacy as regards to common areas and that search.

I am unfamiliar with "fire Suppress"?

Additionally, most condo's that allow STR in the HOA do not require this or it's already installed, however, any free standing property, duplex's and other properties require a fire suppression system.

Repainted the walls etc with 'mold suppressive' paint & again upgraded the old exhaust fan.

We built our 16 person cabin with fire suppression in it because we didn't want to play games with the definition of bedrooms to skirt around the regulations.While I don't disagree with the point your making, I will say that our interactions with the fire marshals and city officials have been way better than we expected. 

It does seem that higher rates are reducing demand for loans, which is driving up home inventory which could - I stress could - suppress home price growth.