Real Estate Spotlight
Source: Economics Group of Wells Fargo Bank, N.A.
CRE Construction Starts Rose Modestly in Q3
High interest rates, elevated building costs and increased commercial real estate vacancy rates have weighed heavily on CRE development over the past several years. As shown in the chart below, construction starts for industrial, office and retail buildings have declined sharply since 2022, with new groundbreakings remaining well below historical norms for much of this year.