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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