The commercial real estate market has slumped in recent years as working from home grew in popularity and borrowing costs surged.
Since March 2022 Fed policymakers, aiming to slow the worst inflation in four decades, raised the benchmark interest rate from near zero to a range between 5.25% and 5.5%, a 22-year high.
Meanwhile, prices for commercial properties fell 3.9% from the second quarter of last year to Q2 2023, well below the 3.3% average annual growth from 1997 until Q2, the Fed said.
