The outlook for commercial real estate is expected to moderate over the next three years, according to the latest forecast from the Urban Land Institute’s Center for Capital Markets and Real Estate. Growth will continue, it found—but at a slower pace than previous years.

In just about every category or asset class, some level of slippage is expected.

For example, growth forecasts for CRE prices are projected to slow with 5% price appreciation expected this year, 3.7% next year, and 2.8% in 2021. The latter two years are below the long-term average growth rate of 4.4% for the first time since 2011.

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Erika Morphy



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