With the rise of new technologies and changing consumer behavior, commercial real estate is facing a slew of challenges in the coming years. As we look ahead to 2023, here are some of the major challenges that commercial real estate professionals should be aware of. The commercial real estate sector is facing several major challenges in 2023. Despite economic headwinds, the pace of change will not ease. Companies must learn to adapt to hybrid working arrangements and offices must evolve with it. Retailers are reaping the benefits of a long period of change which has attracted investor interest. Data centers and industrial real estate have been very resilient so far, but the hotel industry is still recovering from pandemic restrictions. In addition, life sciences activity, workforce housing shortages and rising ESG expectations all pose challenges to commercial real estate in 2021 and beyond.

Following a pandemic-fueled course correction, the global real estate industry faces transformational shifts in how buildings will be used, valued, and transacted in 2023 and beyond. Deloitte's 2023 Commercial Real Estate Outlook reveals that only 40% of global real estate chief financial officers (CFOs) expect to finish 2022 with higher revenues than last year, and 33% anticipate cuts to expenses, citing sustained high inflation, workforce management, and cyber as the top risks to financial performance.

As the saying goes, everything is bigger in Texas. That is especially true of the Lone Star State’s commercial real estate market. In the coming years, five of Texas’ major markets—San Antonio, Austin, Dallas-Fort Worth, Houston, and Frisco—are projected to become even bigger players in the national real estate arena. Let’s take a closer look at what these cities have in store for commercial real estate professionals in 2023.

‍Commercial real estate market in Texas is an important indicator of the state’s economic health. Knowing what to expect from the 2023 commercial real estate market can help investors make strategic decisions about their investments. This blog post will provide an overview of the expected trends in the Texas commercial real estate market and how they may affect investors.