Despite challenges in the office market, Boston Properties has experienced a boost in its financials and increased activity within its office assets.
Public brokerages have been severely impacted by continually increasing interest rates, with some reducing their budget.
Approximately 2 million workers have been required to work in the office, with another 1 million anticipating their eventual return. Despite this, office occupancy in the top regions has been at a standstill.
As the outlook for a complete return to in-person work is looking grim, there is a question of what to do with underutilized spaces, with one option being to tear Class B and C offices down.
REITs have been looking at decreased valuations as opportunities for purchasing assets for less money.
Given the tumultuous state of real estate, some mortgage REITs have been holding back on providing loans to new borrowers in an attempt to avoid having to contend with defaults on those loans.
August 10, 2023 TPG Has $6B To Spend To Take Advantage Of CRE ‘Dislocation’
TPG is one company looking to add CRE assets to its portfolio despite market dislocation.
Four U.S. multifamily communities reported growth in Q2 2023, with improved performance in the sector occurring on both coasts due to increased return-to-work mandates and the presence of AI facilitating more jobs in the areas.
The multifamily market is contending with the result of increasing interest rates as it relates to loans.
The effects of economic uncertainty have impacted the industrial market; while assets are still being delivered, the supply is coming faster than the need for more of the assets.