Will a wave of distress hit CRE markets this year? What different distress measures tell us about property performance. How can investors use this cycle to better position themselves moving forward?

Key CPI measures resume descent. Annual growth in the headline and core consumer price indices — the latter of which omits food and energy — lowered to 3.4 and 3.6 percent in April, respectively. While bumpy inflation over the last few months curbed Wall Street  expectations for near-term overnight lending rate cuts by the Federal Reserve, April’s cooler readings suggest the Fed is still making meaningful progress in bringing pricing pressures down. Further stripping out housing… Read More

Why the Fed’s rate decisions may differ from the consensus perspective How generational differences in “normal” interest rates affect real estate strategies The key trends real estate investors should continue to monitor

Why the unemployment rate will be the number to watch in coming months What a recession could mean for Commercial Real Estate How the Federal Reserve could respond to a recession and implications for CRE

Key GDP growth contributors post positive results. Real gross domestic product increased at an annual rate of 1.6 percent during the first quarter of 2024. While this is a deceleration from the 3.4 percent rate from the final quarter of last year, the economy still grew in several areas. U.S. residents continued to spend robustly, with final sales to private domestic purchasers up 6.1 percent annualized, the best mark in a year. Residential and non-residential… Read More

Why do institutional and private investor views on market timing differ? Are there CRE opportunities that investors can capitalize on today? Which properties should investors consider selling today?

Most store types report encouraging start to 2024. Consumers set a new benchmark for quarterly retail sales volume in the first three months of 2024 — roughly $1.55 trillion. Spending during the January-March span was up 3 percent when compared to the same period last year, despite slackening consumer confidence. This recent rise in spending occurred alongside consumers spreading their purchases across more types of retail, with seven of 10 major categories notching gains. While still… Read More

Bloomberg Features Marcus & Millichap CEO Hessam Nadji Economic Strength and Lower CRE Prices are Creating Opportunity Drivers of the Fed sentiment shift toward “higher for longer”. The up-side of a stronger-than-expected economy for CRE. Are recent price adjustments enough to motivate acquisitions? Why investors waiting on the Fed may miss opportunities.

The Fed and interest rates are important, but have investors missed the big picture? Economic momentum remains sound – what this means for CRE demand drivers How should investors position for the next wave of opportunity?

Energy cost spike bumps up inflation. Mounting costs for gasoline and electricity kept overall inflation elevated over the 12-month period ending in March. The headline CPI measure grew by 3.5 percent during the span, ticking up as the energy index moved into positive territory for the first time since February 2023. Geopolitical conflict, spring-season travel, and energy providers shifting operations amid warmer weather contributed to these higher costs. Fortunately, the seasonality of rising energy prices suggests… Read More