A Snapshot of Changing Market Trends

The rapidly changing conditions underscore the importance of monitoring market trends

Rigorous risk management needs to be the watchword for lenders in the world of commercial real estate amid the uncertainties afflicting most segments of the market, according to CoStar. “The rapidly changing market conditions underscore the importance of monitoring market trends and LTV [loan to value] with live data as an essential factor in managing credit risk effectively,” advised CoStar’s November 2023 update.

In the retail sector, smaller seems to be better. The average size of a new retail lease in the first 10 months of 2023 was 3,265 SF – the lowest level since 2007, and below the 10-year average of 3,500 SF. Yet even though leases for spaces of less than 2,000 SF held relatively stable compared to 2022 with more spaces available, that is not expected to continue.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

Unlimited access to GlobeSt and other free ALM publications
Access to 15 years of GlobeSt archives
Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
1 free article* every 30 days across the ALM subscription network
Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account? Sign In Now

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Philippa Maister

Dig Deeper

Recommended Stories

The Revitalization of Urban Retail

Richard Berger | December 07, 2023

Landlords in prime retail corridors saw 3.3% growth in asking rents over the previous year.

Fortress Provides $260M Refi for Sheraton Times Square

Jack Rogers | November 17, 2023

MCR, Island Capital secure package for 1,780-key hotel in forbearance.

Jobs Numbers Offer Some Optimism on a Soft Landing

Erik Sherman | December 08, 2023

It might be that the economy can avoid a recession. But will inflation continue to cooperate? And will the Fed wait to lower interest rates?

Resource Center

HVAC use accounts for 50% of the total energy consumption of your commercial office buildings. Why wouldn’t you optimize its efficiency? Download this white paper and learn how you can slash costs, enhance tenant satisfaction, and boost sustainability.

Report

Sponsored by Building Engines

The ROI of HVAC Optimization in Commercial Office Buildings

HVAC use accounts for 50% of the total energy consumption of your commercial office buildings. Why wouldn’t you optimize its efficiency? Download this white paper and learn how you can slash costs, enhance tenant satisfaction, and boost sustainability.

Browse More Resources ›

This white paper delves into the alarming surge in renter fraud within the multifamily housing sector. Discover the various drivers behind these trends and how you can stay ahead of the evolving fraud landscape.

White Paper

Sponsored by TheGuarantors

Addressing the Surge of Renter Fraud in Multifamily Housing

This white paper delves into the alarming surge in renter fraud within the multifamily housing sector. Discover the various drivers behind these trends and how you can stay ahead of the evolving fraud landscape.

Browse More Resources ›

What are your goals as an asset or property manager? This interactive tour walks you through customizing your own platform to help meet your goals such as maximizing revenue, optimizing operations, adding value to your properties, and attracting the right tenants.

Interactive Resource Center

Sponsored by Building Engines

How Prism helps CRE Managers Exceed Goals

What are your goals as an asset or property manager? This interactive tour walks you through customizing your own platform to help meet your goals such as maximizing revenue, optimizing operations, adding value to your properties, and attracting the right tenants.

Browse More Resources ›

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information

GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
Exclusive discounts on ALM and GlobeSt events.
Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now

Copyright © 2023 ALM Global, LLC. All Rights Reserved.