Consumers prioritize necessities as debt builds. Overall U.S. retail sales rose 2.5 percent year-over-year in August; however, core spending — which excludes gasoline and auto purchases — ascended 3.6 percent during the same interval. Momentum over the past year led to a core sales record in August of nearly $509 billion. The restaurant and bar, as well as the health and personal care, segments were largely responsible for the pronounced annual gain in core sales, with… Read More

Steady return of urban activity keeps conditions tight. Vacancy held unchanged at 1.8 percent across the city during the second quarter of 2023, marking a 21-month span during which the rate has remained at this two-decade low. Conditions are still tightening in Midtown and Midtown South, as increasing office usage has brought some professionals back to central Manhattan neighborhoods. Placer.ai data indicates that midweek visits to offices in the borough reached 68 percent of the…

Do election years have an impact on interest rates? Which key variables will play a crucial role in determining the future stability of cap rates? What steps should investors take to adapt to the potential “new normal” in interest rates?

Why the Fed’s dual mandate is the most important force driving CRE today Why slowing job creation is good for CRE Will the Fed raise rates again this year?

Labor market dynamics becoming more familiar. Job growth in August tallied 187,000 positions, one of the slowest months for hiring in the pandemic recovery period. Headcounts declined in the information and transportation sectors, heavily influenced by Hollywood strikes and the bankruptcy of trucking company Yellow. Even without these one-off factors, the labor market is displaying clear signs of returning to…

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…