2023 Year in Review

2023 ECONOMIC AND CRE REVIEW; WHAT TRENDS SHOULD INVESTORS BE TRACKING TO CLOSE OUT 2023​

Economic Outlook Vastly Improved​

• Cooling inflation and sustained employment growth bolster economic and CRE outlook for 2024​

• Bank sector risk dissipating, which should aid CRE financing conditions in the coming year​

CRE Performance Keeping Distress At Bay​

• FDIC bank guidance delivered in June 2023 allows extensions and workouts at bank discretion; will reduce CRE distress risk​

• Strong CRE fundamentals bode well for the market outlook once the financing environment becomes more certain​

Property Level Performance Exceeds Expectations​

• Consumer spending has supported hospitality, retail, and industrial property performance​

• The 2024 economic and CRE outlook cautiously optimistic – although many risks still present, prospects of a soft landing continue to rise

*Through October​
Sources: Marcus & Millichap Research Services, BLS, BEA​

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