The Federal Reserve Bank's series of interest rate hikes has been the major story for commercial real estate for the past year, sending shock waves through the community used to a decade of ultra low rates. 

The negative effect that the rate increases have had on the capital markets and valuations have been CRE's chief focus during this period but now it is time to start thinking of where fundamentals will be next year, especially as the Fed is widely expected to pause its monetary policy for the remainder of 2023. 

In general we have been very lucky up until last year. Over the last five years, occupancy has been healthy and there have been rental gains, CBRE points out, noting that in certain sectors net operating income is expected to benefit as the leases expire. 

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