Those who have bet that commercial real estate can only go up and never down might take a close look at the Trepp LifeComps portfolio report for Q1—and its cumulative negative return of 5.77% over 12 months.

"Asset classes in the LifeComps portfolio have been hit with a negative total return in Q1 2022," the report stated. "Multifamily properties took the hardest hit, with a -5.33% total return realized in Q1. Retail and hotel property loans had a lower realized loss of -3.08% and -3.22% respectively. Continued volatility in global markets could impact investor-driven returns as certain parts of the global economy remain closed and drive further uncertainty as we progress into 2022."

Industrial property investments have slowed—for example, Amazon reportedly will dump an estimated 10 million square feet of warehouse space. According to Trepp, additional funding and newly originated loans for industrial have fallen by half to $1.8 billion since the fourth quarter of 2021.