Employment growth strong, but down from recent periods. Monthly hiring dropped below the 300,000 mark for the fourth time this year with the creation of 209,000 jobs in June. While the softest period for employment growth since December 2020, June’s total is still well above the past 30-year average of 126,000. Staff additions were led by…

CPACE Financing Alternative Gaining Traction in Higher-Cost Capital Markets Environment CPACE, a state policy-enabled financing alternative, provides developers access to capital for construction and building upgrades. With all-in rates on floating debt now generally ranging from 8 percent to 13 percent or above, CPACE has become a more viable option for borrowers, including in hybrid structures. Such creative financing alternatives can help borrowers navigate current capital market challenges. Key Features Include: Overview of the current… Read More

Historically, how long has it taken for CRE prices to recover? Could it be better to redeploy capital into different assets? How can buyers hedge risk when financing CRE investments?

Consecutive months of broad growth encouraging. Households increased their spending across a broad spectrum of stores in May, supporting a 0.4 percent rise in core retail sales. For the second straight month, eight categories registered sales growth, a testament to consumers’ spending power. The addition of 339,000 new jobs last month, the most since January, played a role in…

Inflation slows to 27-month low. The headline consumer price index rose by 4.0 percent year-over-year in May, less than half the 9.1 percent pace recorded last June. While consumer prices are still rising more rapidly than the Federal Reserve prefers, the cool down from peak levels encouraged officials to hold the federal funds rate flat in June. The hiatus allows more…

The key economic forces restraining recession risk What’s driving employment in local markets? How job creation influences household formation and CRE demand

Federal Reserve pauses in June to assess data. The Federal Open Market Committee held their policy rate flat at a lower bound of 5 percent at the June meeting. This is the first time the FOMC has not raised the federal funds rate at a meeting since before March 2022. The pause does not, however, imply an end to the current tightening cycle. The Federal Reserve is continuing to reduce its…

Which property types took the longest to recover from the Great Financial Crisis? How has each property type been affected in the post-pandemic era? Should investors expect most property types to return to the typical 3-6% annual gains?

Bipartisan agreement avoids potential catastrophe. President Biden and House Speaker McCarthy reached a tentative agreement on May 27 to suspend the debt limit until January 2025. This bill, known as the Fiscal Responsibility Act of 2023, was approved by the House of Representatives on May 31, and the Senate on June 1, before going to the president for his signature. Treasury Secretary Yellen provided an estimated date of June 5, at which point reserve funds would… Read More

How the health crisis continues to impact all forms of CRE Which property types and locations are benefiting? How long-term trends will evolve in the post-covid economy