2022 has been a tumultuous year for the CRE industry and more volatility is expected in 2023. Below are my Top Ten CRE Predictions for 2023.
Short-term interest rates will increase by at least 1.0%
The Federal Reserve will continue to increase the federal funds rate even after the latest .50% increase at the Fed meeting on 12/14/22, from its current 4.25% to 4.5%-5.0% by the summer of 2023. This will create more havoc in the CRE industry as funding costs and cap rates will increase substantially.
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