The TreppWire Podcast: A Commercial Real Estate Show 311. Mixed Signals & More Turbulence: Consumer Confidence Drops, Opportunistic CRE Deals, Data Center Signs, Valuation Trading Alerts
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Feb 28, 2025 Delve into the latest economic indicators revealing a worrying drop in consumer confidence. Discover how new tariffs are shaking up market stability and driving valuation reductions in key sectors like retail and office space. Learn about high-stakes commercial real estate deals, including Apollo's acquisition of Bridge Investment Group. Explore the ripple effects of Microsoft's shift in datacenter leasing and a surge of activity in the U.S. industrial sector. The complexities of appraisal values and market dynamics are also on the table!
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Economic Indicators Show Mixed Signals
- Declining consumer confidence, at an 8-month low, is driven by inflation and new tariffs.
- Jobless claims rose, partially due to federal job cuts, with further impacts anticipated.
CRE Dealmaking Despite Economic Uncertainty
- Despite economic softness, considerable CRE dealmaking persists.
- Bond yields declined significantly, signaling lower debt costs but a less optimistic economic outlook.
Consumer Confidence and Spending
- US consumer confidence dropped significantly due to economic concerns, impacting new home sales.
- However, robust consumer spending continues, driven disproportionately by high-income earners.