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Real Estate Advisers Suggest CRE Is Past Its Peak, Headed For A Soft Landing

Office building, skyscraper

The commercial real estate cycle could be headed for a soft landing.

An RCLCO report suggests while the industry is unlikely to experience a sharp downturn, indicators imply the cycle, which has been one of the longest periods of economic growth in U.S. history, is edging closer to a "late stable" stage, CP Executive reports.

While the report states significant increases in rent, occupancy and prices may be difficult to attain in the coming days, the U.S. real estate property markets are expected to continue to move toward “peak” conditions.

The industrial sector is experiencing the healthiest growth as demand continues to outpace new supply deliveries.

Office absorption did not exceed new deliveries in the second quarter, while retail continues to suffer from the influx of e-commerce, leading many of the buildings in the sector to experience structural obsolescence.