The upward momentum that commercial real estate prices and values have been experiencing has recently slowed relative to their appreciation trajectory since their amazing recovery starting two years after the credit crisis. Given the challenges in today’s world and the many dynamics affecting commercial real estate, the economy, and the financial markets, it is time to fully understand the next phase of the current market cycle.

As the transition moves to this next phase, it is time to examine the key forces that will dictate one of the following:

  • market adjustment;
  • market correction; or
  • major market correction or crisis.

All investors, including commercial real estate investors, are focused on when is the end of this phase of the cycle; what will be the triggers that push the industry into the new era; and what should commercial real estate professionals expect for value and price changes.

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