How Could the result of the 2022 Midterms Impact CRE?

Election Results Cause Split Congress

• Republicans and Democrats will each control one chamber of Congress following inaugurations in 2023
• Split governments generally pass fewer policy changes, resulting in fewer market disruptions

How Do Political Environments Impact CRE Returns?

• Historically, real estate returns rise 10.8% on average during years with split sessions, a 250-bps premium over years with one party control
• CRE returns recorded strong and weak during each party’s control, but have consistently been higher during periods with divided government

Implications for CRE Investors in 2023

• Regardless of the impact of a policy, potential changes impact investors decision making
• Investors could have 2 years to lock in strategies with few policy changes affecting their playbooks

*Through 3Q
Sources: Marcus & Millichap Research Services, NCREIF

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