High interest rate environments can have a significant impact on the commercial real estate market.

After all, most investors utilize leverage to increase their returns and an increase in borrowing costs makes that leverage more expensive for developers and investors, which decreases potential returns and, therefore, demand for new projects.

Here’s how high interest rates impact the commercial real estate market.

The commercial real estate market is always in flux with new trends and developments emerging all the time. As we look ahead to 2023, there are several key trends we’ve identified that we feel are poised to shape the market this year and beyond.