As CRE supply pressures ease, is optimism ahead?
New commercial real estate deliveries are set to plunge in 2025 and beyond, setting the stage for a improved sentiment in the near term.
![Column chart showing net new commercial real estate deliveries by year, stacked by property type (multifamily, industrial, retail and office). New supply is forecasted to peak in 2024 after which CRE supply plunges in 2025 to the lowest level of the past decade, driven by waning multifamily and industrial deliveries.](https://fsinvestments.com/wp-content/uploads/2024/06/COTW_2024-06-28_thumbnail-247px.jpg?w=250&h=150&crop=1)
CRE investors see an improved market, but prices to lag
Sentiment has improved across the CRE market, as this week’s chart shows. But investors feel better about broad market conditions than asset prices.
![Line chart showing commercial real estate sentiment improving, but with a delta between expectations for broad market conditions and asset prices.](https://fsinvestments.com/wp-content/uploads/2024/03/COTW-2024-03-15_thumbnail-247px.jpg?w=250&h=150&crop=1)
Private CRE debt offers a hefty yield premium to cash
This week’s chart looks at private CRE debt’s notable yield premium to cash, even as cash yields are elevated.
![](https://fsinvestments.com/wp-content/uploads/2023/12/COTW_2023-12-15_thumbnail-247px.jpg?w=250&h=150&crop=1)
Rising home prices support multifamily market
Home prices are rising again, despite elevated mortgage rates. This week’s chart looks at declining home inventories and rising home prices.
![](https://fsinvestments.com/wp-content/uploads/2023/07/COTW_2023-07-28_thumbnail-247px-1.jpg?w=250&h=150&crop=1)
Despite headlines, CRE fundamentals mostly healthy
Despite the significant headline risk, CRE fundamentals continue to be quite stable. This week’s chart looks at vacancy rates across property types.
![](https://fsinvestments.com/wp-content/uploads/2023/05/COTW-2023-05-26_thumbnail-247px.jpg?w=250&h=150&crop=1)
An income-centric market as CRE price growth falters?
Rising cap rates have challenged the economics for CRE property owners. But CRE debt has become increasingly attractive, as this week’s chart shows.
![](https://fsinvestments.com/wp-content/uploads/2023/03/COTW_2023-03-10_thumbnail-247px.jpg?w=250&h=150&crop=1)