Bloomberg Features Marcus & Millichap CEO Hessam Nadji The Challenged Office Sector – What’s Needed For Recovery • Why commercial real estate distress on banks may be overstated • Which office properties are performing best and worst • Which property types face the lowest distress risk and why • The valuation disconnect – how prices are adjusting

How investors are adapting to the market How recent headlines are hiding market perspective The window of opportunity that may soon close

“Supercore” CPI at favorable level. The headline consumer price index increased by 3.2 percent year-over-year in July, trending up slightly from June’s 3.0 percent reading. Accelerated cost increases for food and some forms of energy ticked up the headline statistic for the first time since June 2022. While this could signal a bumpier inflation path ahead, market expectations for a continued CPI slowdown are anchored by a…

Rising Insurance Costs and New Policy Limitations Erode Commercial Real Estate Owners’ Margins The accelerated cost of insurance is impacting the commercial real estate sector on multiple fronts. Heightened premiums are raising overall apartment expenses for owners, making it more difficult for developers to underwrite projects. Cost spikes are also altering property valuations, impacting deal flow in states with higher environmental risk factors. Key Features Include:  Impact of rising insurance costs on apartment expenses, property… Read More

Thrifty consumers purchasing school supplies well in advance. Store-based retail sales, which exclude purchases made online and at restaurants and bars, rose 0.6 percent in July — the largest monthly gain since January. An earlier start to the back-to-school shopping season aided retailers last month, with combined spending across the…

Job growth returns to more familiar, positive territory. Employers added 187,000 new positions in July, the second-slowest month for employment growth since December 2020, when staff counts retracted. July’s hiring was nevertheless still 61,000 roles ahead of the monthly average going back to 1980. The drawback in job creation was not unexpected, as the 9.6 million open positions in June was the lowest in two years. Together, these statistics reflect a downshift in…

What’s driving the surge in confidence levels? Why Wall Street thinks the Fed will keep rates flat Are forces beginning to align to bolster CRE activity?

How does sales activity compare to the long-term norm? Which buyers are most active? What unique opportunities are being created?

U.S. economic growth accelerates. Real gross domestic product increased at an annualized rate of 2.4 percent in the second quarter of this year, outpacing consensus expectations for 1.5 percent growth. It also marked an acceleration from the 2.0 percent advance during the first three months of 2023. Gains in consumer spending, non-residential fixed investment, private inventory investment, as well as state, local and federal government spending, contributed to…

Hiatus short-lived as Fed re-commences rate hikes. On July 26, the Federal Open Market Committee announced the first fed funds rate increase in nearly three months, raising the metric by 25 basis points to a lower bound of 5.25 percent. This follows a pause in June during which the target rate remained flat, as the FOMC chose to observe the impact of previous rate hikes in order to calibrate policy moving forward. The Fed called… Read More