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In the tutorial, the speaker discusses how the real estate market is currently experiencing a significant downturn, with transaction volume dropping by 70-80 percent. They emphasize the rapid change in commercial property values, citing a theoretical cap rate increase from four to eight as an example that could greatly impact property values. The value of commercial property is calculated by dividing the net operating income by the cap rate, before interest payments and debt service are taken into account. The speaker urges viewers to consider the potential impact of these changes on their investments.