As global economic instability weighs on commercial real estate, opportunities are still out there for favored sectors – but developers have to be ready to meet the "new normal."

"Market factors continue to disrupt developers who are not disciplined in their underwriting standards and, as a result, have gotten a little bit over their skis," Anand Kannan, president, CPP, tells us in advance of the GlobeSt Multifamily Spring conference in Florida, where he'll serve on a panel breaking down hot-button issues for the sector. "Towards the end of 2022 and through the beginning of 2023, pricing was different, tenant demand was different, rents were different, cap rates were different and projected returns were different. This type of uncertainty can impact developers who are unprepared and unwilling to adapt."

As for rate increases, Kannan says they're "one number that we plug into a model, and developers always have an ability to adjust" to changing numbers. The bigger concerns, he says, are macroeconomic factors and how they may impact a potential recession as well as a potential shift in job centers.