What the GDP Numbers and Rate Increase Mean for CRE
What the Fed Hike and GDP Decline Mean for CRE Investors
GDP Contracts for Second Quarter in a Row
GDP growth negative in 2Q; Not necessarily a recession
Labor market, consumption and manufacturing performed well in 1H 2022
Each markets will experience varying headwinds
Fed Implements Another Aggressive Rate Hike
Fed raised overnight rates 75 bps on July 27
Aggressive action a response to high inflation
Puts overnight rate in 2.25%-2.50% range, on par with July 2019
Considerations for CRE Investors
Fundamentals remain strong for most properties
Core economic drivers in place to support property space demand
Investors recalibrating strategies to adapt to more fluid investment climate
*Through 2Q
Sources: Marcus & Millichap Research Services, BEA
