Fed continues along established stratagem to combat inflation. On May 4 the Federal Reserve raised the Federal Funds rate by 50 basis points in the second of seven planned rate hikes for the year. Now at a target range between 0.75 percent and 1.00 percent, the effective overnight lending rate is expected to climb to the 2 percent to 3 percent zone before the start of 2023 if the Fed continues with this strategy. Numerous forces… Read More
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.
First quarter GDP contraction not a concern. Gross domestic product fell by an annualized rate of 1.4 percent in the opening quarter of 2022. The reduction was driven predominantly by a widening trade deficit, as import volumes climbed rapidly while exports declined. With stimulus concluded, less government spending also contributed to lower GDP. Excluding these two categories, metrics were much more positive. Personal consumption and private investment both added to GDP last quarter, and domestic… Read More
Tangible locations account for larger slice of total retail sales. Store-based retail sales, which excludes online purchases and spending at restaurants and bars, represented nearly two-thirds of all retail sales in March, the largest proportion this year. The 2.1 percent rise in store-based spending recorded last month suggests consumer mobility is improving, and physical stores are noting a rise in foot traffic as health conditions improve and mandates are lifted. Receding online sales during the… Read More
Leasing volumes robust. After encountering a disproportionate number of hurdles in 2020 and early 2021, apartment demand has soared in the nation’s gateway metros. During recent months, New York, Los Angeles and Chicago challenged Sun Belt and Mountain/Desert hot spot metros like Dallas-Fort Worth, Houston and Phoenix for the country’s largest increases in occupied units.
Inflation pressures persist. The Consumer Price Index increased by another multidecade high margin in March as multiple factors drive ongoing upward price movements. The widespread economic shutdown in 2020 led to unprecedented levels of fiscal stimulus, engorging the money supply, while the Federal Reserve also boosted liquidity by cutting lending rates and offering new programs. Aided by this support, consumer demand leapt ahead of supply as the economy unevenly reopened, hindered by a logjammed global supply… Read More
TD Ameritrade Features Marcus & Millichap CEO Hessam Nadji Commercial Real Estate Investment Sets Record Pace, Marcus & Millichap Outperforming Broader Sector Gains Why demand for commercial real estate is likely to remain strong despite some headwinds How positive underlying real estate space demand underpins sector momentum outlook Marcus & Millichap outperforms sector through expansion and infrastructure enhancements
Bloomberg Features Marcus & Millichap CEO Hessam Nadji Pandemic Still Restraining Urban Office, But Some Traction Beginning to Emerge Perspective on the 2022 urban office space outlook U.S. markets already facing office space shortfalls The long-term perspective – opportunities many overlook
Yahoo Finance Features Marcus & Millichap President and CEO Hessam Nadji Inflationary Pressure Builds Toward Fed Action; Commercial Real Estate Sustains Momentum Potential implications of Federal Reserve rate increases Key drivers attracting capital to commercial real estate Why apartments have considerable runway in 2022 The property type positioned to be the “diamond in the rough”
Omicron a minor setback, but attitudes are shifting. Before the omicron wave, office leasing activity had reached its highest levels since the onset of the pandemic. The space available for sublease also declined, most importantly in central business districts. Omicron interrupted this positive trend, raising vacancy in CBDs by an estimated 30 basis points in the first quarter of 2022, while suburban rates remained stable. The subsequent slowdown in cases is welcome news for office… Read More
Unemployment rate nears parity with pre-pandemic. Staff counts expanded by 431,000 in March, helping lower the unemployment rate to 3.6 percent — only 10 basis points above the February 2020 measure. Weekly initial jobless claims have also fallen to levels comparable with before the health crisis. Overall, the labor market has generally returned to where it was just about two years prior, which is a more rapid improvement than in previous recessions. It took over… Read More