Mike Acton, head of research at AEW Capital Management, was a guest on the latest episode of Nareit’s REIT Report podcast.

Acton discussed the broader macro backdrop for commercial real estate. While markets are excited about the prospect of interest rate cuts, that sentiment is set against concern about potential recession and possible policy changes after the election. “It's a little bit of a mixed bag as far as the broader outlook goes.”

During the interview, Acton also noted that at this stage, most investors have rebalanced their portfolios along property sector lines. Going forward, it's likely going to be less about what specific property sectors investors are targeting and probably a lot more about the quality of the individual properties and locations. “Micro locations are becoming much, much more important in the investment decision than say market decisions,” he said.