Market recovery may be mixed

Commercial recovery could be slow for some sectors.

The commercial real estate market could experience an unbalanced recovery next year, despite overall market improvement, CBRE explained.

There are multiple sectors in the commercial market that may have worried commercial property managers in recent months. The office market struggled in recent months for multiple reasons, while the retail market has many issues, as well, the firm noted, according to World Property Channel. Many issues with the office market is due to the changing landscape of companies and how much space is needed.

"[O]ffice demand historically came from bigger drivers like healthcare, [including] back-office medical uses," said John Gilbert, senior vice president of CBRE, according to the news source. "But, on the flip side, the banking industry needs a lot fewer people than [in previous years] and demand from defense contractors is dropping off as well."

Many parts of the commercial market still are strong, which may help propel the market forward. The firm added that the multifamily market improved in recent months, with significantly higher demand and increased development. Furthermore, commercial mortgage-backed securities also should strengthen next year.

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