2023 ECONOMIC AND CRE REVIEW; WHAT TRENDS SHOULD INVESTORS BE TRACKING TO CLOSE OUT 2023
Economic Outlook Vastly Improved
- Cooling inflation and sustained employment growth bolster economic and CRE outlook for 2024
- Bank sector risk dissipating, which should aid CRE financing conditions in the coming year
CRE Performance Keeping Distress At Bay
- FDIC bank guidance delivered in June 2023 allows extensions and workouts at bank discretion; will reduce CRE distress risk
- Strong CRE fundamentals bode well for the market outlook once the financing environment becomes more certain
Property Level Performance Exceeds Expectations
- Consumer spending has supported hospitality, retail, and industrial property performance
- The 2024 economic and CRE outlook cautiously optimistic – although many risks still present, prospects of a soft landing continue to rise
*Through October
Sources: Marcus & Millichap Research Services, BLS, BEA
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