What The Plummeting Euro Means For U.S. CRE Investors

European Economy Faces Uncertainty

• Recession fears are growing in Europe, with Eurozone inflation at 9.1%
• Russian oil and gas imports are down 35% and 73% respectively, dampening Europe’s productivity

USD Records Surge in Value Relative to the Euro

• The Euro-Dollar exchange rate has been falling rapidly, hovering near $1 since summer 2022
• As a result, European and global investors are shifting funds into dollar denominated assets, like U.S. CRE

U.S. CRE Viewed As a Safe Bet For Global Investors

• U.S. CRE is seen as a more stable investment during periods of global economic uncertainty
• Since 2003, European investors have increased capital investments into U.S. CRE by an average of 15% in years when the Euro fell against the U.S. Dollar

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

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