The threat of a commercial real estate crash is hanging over the fragile US economy.
Rising interest rates in the regional banking sector have brought fears of a commercial real estate crash.
During a recession, there may be a decrease in demand for commercial real estate, which can lead to lower property values.
The Federal Reserve reported financial stability that brought concerns tied to rising interest rates, including in commercial real estate.
While the commercial real estate market is facing challenges, a full-blown real estate crash in 2023 is not guaranteed.
However, it is essential for stakeholders to consider solutions like office-to-residential conversions to ensure the long-term
stability of the commercial real estate market.
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