the most significant factors contributing to the collapse of CRE is the series of rate hikes implemented by the Federal Reserve
2020
2,4
m
Developers have built more commercial properties than the market can support, leading to an excess of supply. As a result, the value of these properties has decreased, and many investors are left with properties that are difficult to sell or lease.
Work From Home has led to a decrease in the need for large office spaces. Additionally, the rise of e-commerce has caused a decline in the demand for brick-and-mortar retail spaces, which has further impacted the CRE market.