US economy shows positive glimmers, but market risks still drive caution

On this week’s episode of the CRE Exchange podcast, Cole Perry, Senior Market Analyst, and Omar Eltorai, Director of Research, both at Altus Group, break down the current economic conditions, focusing on the Federal Reserve’s reports, GDP releases and key insights from the housing, industrial, retail, office, and banking sectors.

Key Takeaways: 

(01:05) Analysis of the Federal Reserve’s Beige Book: subdued commercial real estate activity. 

(02:15) Challenges faced in the office sector, in leasing, rent and valuations. 

(03:40) US Real GDP’s annualized growth reached 4.9% for Q3 2023. 

(06:06) Update on retail sales and consumer spending.

(08:37) Housing market trends — home sales, supply, mortgage rates and what it means for multifamily.

(10:33) The latest on large banks’ earnings and the appetite for commercial real estate lending.

(14:04) Asset managers signal that dry powder is primed for opportunistic CRE investment.

(16:30) Brokerages’ shift from 2022 expansion to 2024 cost reduction. 

(17:52) Interesting themes across industrial, office and retail sectors.

(24:41) Announcements: State of the market Canada edition and Altus ODCE webinars.

Resources Mentioned:

Cole Perry -

https://www.linkedin.com/in/coleperry1/

Omar Eltorai -

https://www.linkedin.com/in/omareltorai/

Altus Group -

https://www.linkedin.com/company/altus-group/

Federal Reserve’s Beige Book -

https://www.federalreserve.gov/monetarypolicy/files/BeigeBook_20231018.pdf

Webinar recording: US State of the Market  -

https://www.altusgroup.com/webinars/us-state-of-the-market-quarterly-analysis/

Upcoming webinar: NCREIF ODCE Index - Q3 2023 analysis  -

https://www.altusgroup.com/webinars/ncreif-odce-index-quarterly-analysis/

Upcoming webinar: Canada State of the Market -

https://www.altusgroup.com/webinars/canada-state-of-the-market/

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