Why the Last 5 Years Suggest Strong CRE Outlook

What the Past 5 Years Tell Us About the Future​

Range of Rare Headwinds of The Last 5-Years​

• A once in a century pandemic​

• 40+ Year High Inflation​

• A 500+ basis point interest rate surge ​

Despite Headwinds, CRE Performance Generally Sound ​

• Vacancy rates remain range-bound (except office) proximate to long-term averages​

• Positive sustained rent growth for most property types and most metros ​

CRE Investment Activity Poised to Accelerate ​

• Given CRE’s performance through some of the most severe headwinds on record, consider the potential going forward​

• Assuming a soft-landing, lower interest rates and a deep well of readily available capital, the CRE investment outlook positive​

• Consider the potential of CRE if the wind isn’t in the sector’s face…​

*Through August 22​
Sources: Marcus & Millichap Research Services, CoStar Group, Inc., Real Capital Analytics, Federal Reserve​

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