Persistent inflation continues to influence the Federal Reserve’s decision making in 2024, amid ongoing moderation in overall economic and labor conditions. These factors create a complex and mixed outlook for commercial real estate assets, according to Cushman & Wakefield’s midyear macro outlook report.
“Cracks are forming beneath the surface, as consumers and businesses remain under pressure from the cumulative effects of higher interest rates and inflation,” said Rebecca Rockey, deputy chief economist and global head of forecasting at Cushman & Wakefield. “Some sectors have been, or are in, contraction mode. The manufacturing and transportation sectors have been anemic, if not recessionary. Job growth is concentrated in lagging sectors like government, education and healthcare.”
The rationalization of office space usage is continuing in 2024 and, consistent with Cushman & Wakefield’s prior outlook, with net absorption projected to be negati
