Cushman & Wakefield releases mid-year macro outlook for commercial real estate | News

Persistent inflation continues to weigh on the Federal Reserve’s decision-making in 2024 amid continued 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 mid-year 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 were anemic, if not recessionary. Job growth is concentrated in lagging sectors such as government, education and health.”

Rationalization of office space utilization continues in 2024 and, in line with Cushman & Wakefield’s previous outlook, net absorption expected to be negative.