Investors that swooped in on South Florida’s multifamily boom now face elevated interest rates, high insurance costs and plateauing rents. Compounding the problems are inflation, which has prompted rent delinquencies, and a hefty development pipeline that’s slightly tempered demand, prompted concessions and led rents to plateau or slightly decline in some submarkets.
During a January 25 networking event in Charlotte, North Carolina, Katten and Cushman & Wakefield partnered to provide CRE thought leaders an opportunity to discuss their insights on how interest rates, economic uncertainty, job growth and even artificial intelligence will affect the commercial real estate industry in 2024.
The recently released 2024 U.S. Investor Intentions Survey by CBRE Group Inc. found more than 60% of respondents expect to purchase more real estate in 2024 than they did last year. But most are waiting to see what the Federal Reserve decides to do with interest rates at its meetings later this year.
