Which Asset Classes Are Deal Ready?

SAN DIEGO—The outlook for multifamily and retail seems to be stable for now, but the outlook for office remains uncertain. So said a panel of experts during a breakout session at the recent Mortgage Bankers Association CREF 2023 conference and expo here in San Diego. Moderated by Victor Calanog, head of Commercial Real Estate Economics at Moody’s Analytics CRE, panelists discussed how to generate business in today’s current climate with rising rates and decreasing sales activity along with reduced demand across all asset classes. 

The consensus among the industry experts was that the capital market outlook for retail and multifamily is good. Panelist Claudia Steeb, Senior Managing Director at JLL Capital Markets, said that retail is improving and is no longer at the bottom of the totem pole. “Office has replaced us,” she said. “The pandemic, if it did one thing, cleared out the bad retail.”