Although the national macroeconomic market has become more challenging in recent months due to factors such as rising interest rates and inflation, Franklin Street maintains a positive outlook on the future of commercial real estate. This is especially true in Florida, where strong population and job growth has created high demand for nearly all varieties of commercial real estate property.
In this report, we explore the data and trends behind the country’s slowing economy, as well as the factors specific to Florida that we believe will help the state prevail in 2023.
“Although the macroeconomic environment has proved to be incredibly challenging this year, our outlook remains positive. The tightness in the labor market along with layoffs not yet materializing, despite the CPI figures, suggest that companies and consumers will enter a recessionary environment from a position of strength. For commercial real estate assets, the forward outlook is also positive, however, complex and regionally dependent. Given the current imbalance between supply and demand for housing, multifamily assets will continue to perform well in most regions. E-commerce trends and the comeback of brick-and-mortar retail have also presented unique opportunities in the industrial and retail space. Office assets present challenges right now with remote work becoming more popular and competition for quality products. Overall, if consumers can maintain a healthy position, commercial real estate assets will as well.”