Special Report

Is There Light at the End of the Tunnel?

Pandemic Continues to Weigh Down Economic Recovery

Unemployment claims are far below their Spring peak, but remain higher than any week in the Financial Crisis
And while overall retail sales have recovered, sectors like restaurants and entertainment continue to lag behind

Election Outcome Remains Uncertain

While election results are not yet final, the likely outcome will be a divided Congress with Biden as president
A split government is unlikely to enact significant reforms and may only pass a moderate stimulus package

What is Gross Domestic Product (GDP)?

GDP measures the economic output of a country
It includes the total value of all final goods and services produced by a country

Blue Wave Likely Means Bigger Fiscal Stimulus

- If Democrats take control of the House, Senate and Presidency, next round of stimulus may be $2T+
- Increased spending would support job creation, consumption, housing demand and investment

Uncertainty About the Future Remains Elevated

The upcoming election is likely to shape key factors such what the next round of fiscal stimulus looks like
Future stimulus and the trajectory of the pandemic will impact the level of distress in the real estate market

Coronavirus, tentative fiscal stimulus, and the presidential election contribute to record-high uncertainty levels
Volatility and the government response, drove interest rates to all-time lows and spurred increased savings
When the forces creating uncertainty abate, a wave of sidelined capital could reenter the market
Influx of money to the economy will be felt in two primary ways – Consumption and Investment
– Consumption: Heightened spending activity supports consumer-facing real estate demand (Retail, Industrial, Hotel, Self—Storage and even Apartment)
– Investment: Wave of capital could reengage investment landscape, some of which would flow to CRE
Engage clients in conversations about how to capitalize on opportunities ahead of the wave
Investors who act now will be met by record low interest rates and a favorable yield spread over the cost of capital