Inflation, Sentiment, and the Impact on CRE
INFLATION, SENTIMENT, AND THE IMPACT ON COMMERCIAL REAL ESTATE
June Inflation Trending Higher, But Trend Is Positive
Headline inflation rose to 3.2%, but the more important Core CPI number fell
The housing component of CPI remains elevated, but is forecasted to fall, aiding the current trend further
Brightened Outlook Boosting CRE Space Demand
Confidence and sentiment measures for consumers, small businesses and CEOs are all rising in July
Absorption is likely to rise across products if recession fears keep decreasing and individuals feel optimistic
What To Expect in 2H 2023
Wall Street is expecting the Fed to keep overnight rates flat through the December meeting
If positive moment is sustained, it offers a strengthening CRE outlook
*Through 2Q; Small Business Optimism through July
Sources: Marcus & Millichap Research Services, University of Michigan, The Conference Board, NIFB
