To say that multifamily and industrial sectors are hot is like noticing heat at the equator. Did anyone not already notice?

The National Association of Realtors has been tracking the 12-month sales price changes on various property categories. In March, they were as follows: 14.7% for industrial, multifamily at 10.6%, retail's 5.1%, and, bringing up the rear, office's 2.3%. Except for office, the appreciation rates exceeded those of pre-pandemic times.

"As interest rates increase, one natural question that arises is the effect on commercial prices," wrote Scholastica Gay Cororaton, a research economist at NAR. "Based on the demand and supply conditions in these property markets, there is a greater likelihood that valuations of commercial properties will remain firm, except in the office market which is facing an elevated vacancy rate. The pace of price appreciation in the retail property market could also slow due to reduced consumer spending as inflation erodes purchasing power."