The December 2016 rate increase creates mixed signal for investors.

Following the lengthy campaign, Donald Trump surprised pundits and pollsters by winning the presidential election.  This unanticipated turn of events set off a rapid drop in both stock market and Treasury rate futures before they recovered early Wednesday morning.  In the wake of this unexpected outcome, markets are repricing both debt and equity to factor in increased government infrastructure and defense spending as well as the prospects of higher inflation.  Sentiment is fragile and volatility… Read More

Vacancies tighten in the Third Quarter despite elevated completions and investors broaden their acquisition criteria.

Commercial mortgage-backed security (CMBS) financing slowed dramatically in the first half of 2016 as volatility roiled the debt markets.  In addition, new rules governing CMBS issuance that take effect at the end of this year also created uncertainty in the marketplace.

Hiring in September reaffirmed that job creation is moderating from the elevated levels of the past two years.  Accelerated wage gains offer some evidence that employers are competing vigorously to fill positions, an action that could intensify inflation pressures in the coming year.

Foreign demand for U.S. commercial real estate elevated.  Global financial market volatility, weak foreign economies, low alternative investment yields and a variety of factors creating uncertainty have reinforced the advantages of direct investment in U.S. commercial real estate.

Modest payroll growth last month reaffirms the sound state of the U.S. labor market and raises questions regarding whether the Federal Reserve needs to raise its benchmark interest rate when it meets later this month.

For-sale housing inventory fell to a decade low during August, and limited housing stock along with strong demand for homes are beginning to encourage homebuilders to shift their focus from larger, luxury homes to smaller, entry-level housing

Existing single-family home prices marked moderate gains in July, moving back into alignment with the pre-recession peak.

Exceptional payroll growth in July and upward revisions to job gains in the preceding two months underline the persistent strength of the U.S. economy, which is now in its seventh year of expansion.  Secondary indicators of labor market activity, including unemployment claims, the unemployment rate and wage growth, reinforce the strengthening trend and diminish some of the negative mixed signals in other economic data points.  The combination of positive labor market trends will support additional… Read More