10 Commercial Real Estate Market Trends and Predictions to Watch Out For in 2023


The annual Allen Matkins View From the Top brings together the top real estate economists, owners, investors, developers and brokers in Western Region commercial real estate. Now in its 15th year, View From the Top remains a key source for market trends and predictions. Here are the top takeaways from this year’s CRE brain trust:

Tailwinds Are Stronger Than Headwinds for Capital Markets Going Into the Next Pricing Cycle. According to Michael Van Konynenburg, president of Eastdil Secured, although capital markets have been choppy, the positives outweigh the negatives in today’s environment. With increasing replacement costs, growing rents, a very strong job market, strong balance sheets, limited overleverage and high liquidity ($4.1 trillion on deposit at the Fed), commercial real estate is well positioned for strong momentum in the second half of the year. Konynenburg reminds us that historically, CRE performs well in a rising rate environment. But until FOMO starts to kick in, transactions will tend to be more “bespoke” placements.