Morningstar DBRS is closely watching developments in global commercial real estate markets, as higher interest rates and easing, but ongoing, inflation continue to weigh on the industry amid persistent capital markets uncertainty.

The office sector, in particular, faces challenges resulting from a prolonged post-pandemic return to office and corporate cost-cutting, which together are weighing on office space demand. This could have knock-on effects on nearby properties. Sectors such as multifamily and industrial properties continue to operate under more favorable conditions but are not immune to higher costs of capital coupled with a slowdown in the economy.

Against this backdrop, we offer our latest analytical insights on commercial real estate.