Commercial Real Estate Outlook Shifts with Republican Trifecta
Election Results Signal Impactful Changes For The Economy
- Republicans won control of the house, senate and presidency, suggesting significant policy changes may occur in the near future
- Proposed policy changes for tax cuts, tariffs and immigration are likely to impact the economy and commercial real estate landscape
- Pace, scale and impact of policy changes remain uncertain, creating both optimism and increased risk among investors
Interest Rate Outlook Shifts As Inflation Concerns Grow
- The 10-year Treasury yield has risen by 70 basis points since October, due in part to expectations of increased inflation
- The recent rise in the 10-year Treasury yield is putting upward pressure on the cost of commercial real estate financing
- Proposed tariffs and immigration changes are projected to increase the national deficit, resulting in increased treasury issuance and a slower pace of rate cuts from the Federal Reserve
Real Estate Demand Drivers Strong Despite Policy Uncertainty
- Continued housing shortage and large gap between the cost of renting and buying support long-term outlook for apartments
- Consumer strength underpinned by strong household balance sheets, with most having below-average debt and high levels of savings
*Sources: Marcus & Millichap Research Services, CME Group
Watch Video Below: