Experts have expressed concern about commercial real estate properties and the impact higher interest rates could have on their refinance costs. CBRE Group, one the world's largest commercial real estate companies, recently told investors that "transaction activity has slowed significantly." Office properties, in particular, have come under the microscope, and the company notes that it could take years for these properties to recover their value.

W.P. Carey (NYSE: WPC) is a high-yield dividend payer that has significantly reduced its exposure to office properties. This week, the real estate investment trust (REIT) announced plans to accelerate its exit from these properties by spinning some holdings into another publicly traded company while selling off the remainder. Here are the details of its strategic move and the impact it will have on investors.

Commercial real estate has dealt with headwinds that drastically slowed the industry this year. According to CBRE Group, the industry faces headwinds from high interest rates, which the Federal Reserve uses to stave off inflationary pressures in the economy. Other factors, like stress in the banking system and declining demand for office space, have contributed to the industry's challenges.

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Source Fool.com