Looking at the midyear approaching, BGO Chief Economist Ryan Severino reviewed the first quarter and CRE trends coming out of it.

The "narrative for the U.S. commercial real estate (CRE) market remains largely unchanged," he wrote. The economy continues to expand — the third estimate of 2024 Q1 GDP released on Thursday was revised slightly upward to an annualized 1.4% — "supporting generally healthy space market fundamentals, which are maintaining their general trajectory, both overall and within each property type."

Things remain complicated. High interest rates continue to confound markets and many "are growing increasingly frustrated with the Fed and monetary policy." Severino says that, overall, "the balance of risks still skews positive for CRE over the next 12-18 months."