Commercial real estate outlook

Q2 2022: A strong market put to the test

Today’s backdrop poses challenges for investors, but we believe areas of opportunity remain across CRE sectors.

Download the outlook
April 13, 2022 | 15 minute read

Any prospect of the world returning to a more normal environment in 2022 was quickly put to rest in the first three months of the year. Soaring inflation, a new COVID variant, the outbreak of war in Ukraine and hawkish monetary policy gripped the global economy in Q1. Risky assets wavered while interest rates rose. Still, the U.S. economy appears to be in a strong place, buttressed by a healthy consumer and stellar corporate profits. Within the U.S. commercial real estate (CRE) market, we see a debate emerging around high valuations and the ability of strong fundamentals to support them amid rising risks.

This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of FS Investments. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.

All investing is subject to risk, including the possible loss of the money you invest.

Andrew Korz, CFA

Executive Director, Investment Research

Christopher Bole

Financial Writer, Fund Communications

Robert Hoffman, CFA

Managing Director, Credit Wealth Solutions

Search our site