CRE Exchange: Commercial Real Estate, Property Valuations, Real Estate Analytics and Property Tax Rates, returns, and realities for US CRE
Feb 6, 2025
Discover the latest economic indicators affecting U.S. commercial real estate, including inflation trends and the Federal Reserve's interest rate impacts. Dive into construction spending analyses that reveal rising costs, especially in data centers. Explore the interplay between treasury yields and recent earnings reports, showcasing S&P 500 companies surpassing expectations. Gain insights into the growing optimism among stakeholders in the CRE market despite challenges, and learn about the key economic data set for release this week.
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Fed Holds Rates, Inflation Persists
- The Federal Reserve held interest rates steady, in line with market expectations.
- Inflation remains a concern, influencing the "wait and see" approach.
Housing Market Dynamics
- Limited existing home inventory and affordability challenges are boosting multifamily demand.
- Builders face shrinking margins and cost pressures, potentially constraining supply further.
Construction Spending Slows
- Private non-residential construction spending growth has slowed to its lowest since August 2021.
- Manufacturing construction spending has doubled pre-pandemic levels but faces uncertainty.