Research

Our research methodology integrates historical and current economic, demographic and real estate factors which enables our Research Services department to develop comprehensive market forecast scenarios.

Research Brief: Inflation – March 2024

Inflation trends cloud Fed’s path. Still-elevated inflation is leading Wall Street participants to delay expectations for the Federal Reserve to start cutting interest rates this year — shifting from spring to summer. Alongside strong hiring in the opening months of 2024, February’s higher headline CPI reading contributed to the Federal Open Market Committee’s  decision to hold the federal funds rate at a 5.25 percent lower bound in March. Fortunately, core CPI, which strips out the more… Read More

IMPACT OF THE MARCH FED MEETING

The Fed held rates flat as expected but they delivered two important messages What tapered Quantitative Tightening could mean for CRE investors How the rate cut timeline could play out this year

Research Brief: Employment – March 2024

Rising unemployment releases pressure on inflation. Employment growth accelerated in February with 275,000 jobs created, yet the unemployment rate also rose by 20 basis points to 3.9 percent. While the highest rate of unemployment in 25 months may be interpreted as a negative signal, in this case some labor market softening could be a positive sign, especially when paired with healthy employment growth. After more than two years of sub-4 percent unemployment, the additional 150,000 people… Read More

HOW NEARSHORING COULD IMPACT CRE

Why evolving manufacturing strategies could boost CRE space demand How recent geopolitical conflicts are impacting supply chains Which CRE property types and locations are benefitting most from nearshoring

Research Brief: Retail Sales – February 2024

Dual retail categories buck the larger trend. In January, for the first time since March of last year, core retail sales fell on a monthly basis, a reflection of more consumers avoiding big-ticket, discretionary purchases. The 0.5 percent decline in core spending, however, overshadowed sales at restaurants and bars, as well as grocery stores, which each rose in both real and nominal terms last month to record levels. Collectively, the two categories accounted for…

Research Brief: Inflation – February 2024

Inflation metrics present mixed bag. The headline Consumer Price Index rose 3.1 percent over the year ended January, down 30 basis points from the December reading. Falling energy prices and flattening costs for food helped slow inflation, as supply chains remained fluid despite ongoing global conflict. However, when stripping these indices out, the core CPI measure held at 3.9 percent over the year ended January, the same annual rate as last month. While sustained core pricing… Read More

DELINQUENCY RATES AND CRE

Does CRE delinquency offer investors an opportunity or a risk? How prospective Federal Reserve rate reductions could mitigate risk What the media headlines don’t tell you

WHAT INFLATION MEANS FOR INVESTORS

Why the Fed will slow-play rate reductions Key portfolio strategies investors can use this year Why investors need to “roll-up-the-sleeves” in 2024

Yahoo! Finance – Why CRE Investors Are Cautiously Optimistic

Yahoo! Finance Features Marcus & Millichap CEO Hessam Nadji Key Trends Supporting Rising Investor Sentiment  The key trends bolstering CRE sentiment and why so much capital is targeting the sector. Which catalysts are likely to increase transactions? The challenges and opportunities facing multifamily investors. Why retail real estate has become a leading investment opportunity.

EMPLOYMENT MARKET AND THE FED

Which employment sectors are outperforming? How employment trends impact the CRE property outlook What challenges could impact the Federal Reserve’s decisions on interest rates?