As inflation picks up and interest rates continue to rise, the single family home market "looks most vulnerable" to a more serious correction, according to CBRE's global chief economist Richard Barkham—but he and other experts agree that the economy appears positioned to continue to support CRE fundamentals in the near term.

In a recent discussion with the firm's Spencer Levy, Barkham said the Fed funds rate will likely peak in 2023 at 2.5%, and growth will slump from around 3% this year to 2% next year. But the possible residential correction "isn't a foregone conclusion," he said, especially if unemployment remains low.

"We do believe that this term stagflation will take over from pandemic as the biggest concern, but it will be short lived," he told Levy. "This is not the 1970s, and we believe that the economy will continue to provide reasonable support for commercial real estate fundamentals over the next 12 and 18 months. We may well see some yield correction, my colleagues will discuss that, but certainly no riot in the real estate sector."