Green Street has revised upward its net operating income (NOI) forecast for cold storage, mall, and industrial while cutting its single-family rental (SFR) estimates, according to its recently released 2023 Commercial Property Outlook.

Higher cap rates (i.e., lower real estate prices) plus some relief on the interest rate front has improved the valuation picture for commercial real estate, according to its report, although "pricing is still about 10% expensive vs. long-term, investment-grade corporate bonds."

Peter Rothemund, co-head of Green Street's Strategic Research team, said that supply growth hasn't been a concern and that tighter financing and lower property prices will reduce starts.

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