Prepare for Choppy Seas.

The 2024 economic outlook for commercial real estate (CRE) is uncertain due to persisting challenges, particularly high interest rates. This predicament is causing increased borrowing costs, decreased property values, and reduced loan availability. Smaller banks, holding 70% of all CRE loans, will face substantial economic pressures, with approximately 15% of CRE loans coming due in 2024. However, opportunities still exist for savvy investors who can identify and capitalize on them. Strategies to mitigate risks and exploit CRE opportunities include having readily available cash reserves, addressing maturity dates of loans, and evaluating assets in light of potential declines in CRE prices. Navigating the commercial real estate market in the coming years will require patience and adaptability. [Extracted from the article]