Economic Drivers and CRE

IS “FED-CENTRIC” ANALYSIS MISSING THE POINT?​

U.S. Economy Strengthening​

• Numerous economic drivers are delivering positive momentum ​

• Investors have become too focused on interest rate dialogue and may be missing the bigger picture. While interest rates are important, they shouldn’t overshadow supply and demand​

Economy Will Drive Property Performance​

• Corporate profits, employment, consumer sentiment and retail sales are all climbing​

• While investors may be focused on rates, positive economic trends and sentiment will boost CRE space demand​

CRE Outperforms Over The Long-Term​

• While the quick pace of rate movements shocked CRE trading, investment strategies need to adapt to the current climate​

• The strong economy could be a double-edged sword. It may preclude substantive rate cuts, but could also drive strong space demand​

*Trailing 3-month average through April​
Sources: Marcus & Millichap Research Services, University of Michigan​

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