Two Forces Driving the CRE Outlook
NEW LABOR MARKET DATA STRENGTHENS LIKELIHOOD OF SOFT LANDING
Labor Market Growing, But At Subdued Pace
The U.S. is on pace to add more than 2 million jobs in 2023, a slower rate than last year
Slowed employment growth will help keep wage growth in-line, aiding the Fed’s inflation fight
CRE Outlook Boosted If Soft Landing Achieved
CRE absorption is strong during periods with this year’s level of job creation
A soft landing would diminish upward pressure on interest rates, while raising consumer and business confidence, tailwinds for CRE demand and investment
Federal Reserve Actions To Drive Economic Outlook
The question is, will wage growth and inflation fall quick enough for interest rates to stop rising in 2023
Wall Street does not expect a rate hike at the next Fed meeting, but is split on the outlook for EOY 2023
*Sources: Marcus & Millichap Research Services, BLS
