Too many services of adult beverages can land a person in a hangover the next morning. In a way, that is the U.S. capital trend that MSCI sees in its 2023 Q1 report. Except that the overdoing for the CRE industry was a "period of excess liquidity" that is requiring a downward adjustment.

It reports that deal activity shrank by 56% in the first three months of the year compared to a year ago. At the same time, cap rates rose across all major property types by 30 basis points to 60 basis points.

"Deal volume is down at double-digit rates from a year earlier, prices are in retreat and cap rates are ticking upward," the firm wrote. "Uncertainty abounds amid ongoing questions about the status of financing with the turmoil at regional/local banks and the viability of certain office and retail properties. Combine that uncertainty with the high levels of construction for the apartment and industrial sectors in recent years, and it is understandable that some would take the view that calamity is ahead."