Commercial Real Estate Chartbook: February 2022

CRE Starts the Year on More Secure Footing Summary

Big Picture

  • CRE fundamentals mostly strengthened in the second half of 2021 alongside fairly robust economic growth. While the improvement in economic activity was encouraging, it has helped bring about problematic inflation that has sent Treasury yields higher and prompted the Fed to set out a more aggressive timetable for hiking interest rates.
  • Despite rising interest rates, a strong yet more moderate pace of economic growth will help keep the white-hot apartment and industrial sectors aloft and provide a more stable foundation for the beleaguered office and hotel markets to find secure footing.