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Commercial Property Executive’s final reader poll of 2023 asked respondents to identify their biggest challenges going into the new year.
At the tail end of a year that had both difficulties and opportunities for commercial real estate investment, development and operations, respondents had one chief challenge that stood above the rest: interest rates.
In contrast to last year’s 60 percent of respondents stating that it will be their biggest challenge, 50 percent identified it as their top hurdle in the new poll. The responses take place as investors and lenders have largely priced in the current funds rate, and anticipate either more lending stability or several cuts going into the new year. Still, this may be a moot point if domestic and international political tensions persist, or if inflation proves to be more difficult to reduce than anticipated.
READ ALSO: On the News: 3 Ways Government Will Impact CRE in 2024
The remainder of respondents—50 percent—identified other hurdles as their biggest challenges, suggesting that many are more region and sector-specific. These could include rising insurance costs, difficulties with sustainable operations and construction processes, office occupancy rates and resilient logistics and manufacturing operations.
Commercial Property Executive’s latest reader polls are now being posted biweekly on LinkedIn. Click here to enter into our latest poll.
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