Chicago & Midwest + Greater Chicagoland + Office | August 11, 2023

CORFAC Survey: Industrial, Office Fuel Activity Amid Recession Concerns

CORFAC has released its Spring 2023 Business Impact Survey, and the results indicate that the industrial and manufacturing sector continues to fuel the pipeline for 88% of respondents and the office sector fueled transactions for 53%.

As the impacts of recession concerns, inflation, and rising interest rates have affected many in the commercial real estate industry, there was a reported leveling of business activity compared to the latter half of 2022.

Overall transaction volume increased by just 24%, remained neutral for 35%, and decreased slightly for 35% of respondents. Economic conditions are driving many decisions, with 81% of survey respondents saying the availability of capital and interest rates are major factors affecting transaction activity.

However, the survey did reveal several bright spots, including positive dynamics affecting commercial real estate, such as a strong job market and favorable hiring trends, return-to-work mandates, and improved delivery times for construction materials.

Connect

Inside The Story

CORFAC

About Jasmine Kilman

Jasmine Kilman is Content Director of Connect Commercial Real Estate, covering Chicago and greater Chicagoland, the Midwest, Seattle, and the Pacific Northwest. She covers industry trends, transaction deals, market research, and produces daily news stories. With experience in marketing and communications for academic nonprofits and corporate clients, including Hearst Media, Hilton, and Coldwell Banker, Kilman has written about commercial real estate, environmental, social, and corporate governance (ESG), technology, healthcare, and philanthropy. She was born and raised in California and graduated with a degree in public relations. In her spare time, Kilman enjoys hiking and traveling to new locations with her family.

Order Reprints