AEW Capital Management -Fri, 05/26/2023 - 15:19

U.S. Economic & Property Market Perspective

The first quarter saw the continuation of two interrelated trends, tightening credit conditions and slowing economic growth. With respect to the former, the Federal Reserve twice increased the overnight lending rate by twenty-five basis points during the quarter bringing the effective Fed Funds rate to 4.83% at the end of March, almost five hundred basis points above the year-prior level and the largest 12-month increase in the benchmark rate since 1982. For the latter, annualized first-quarter real GDP growth, while positive, slowed from the fourth-quarter mark of 2.6% to just 1.1%. Despite this, labor market indicators, albeit lagging, remain strong with continued historically low unemployment with moderate but elevated levels of new unemployment insurance claims. With the Federal Reserve poised to “stay the course” on continued tightening of credit conditions, we expect aggregate growth to continue to slow through the rest of this year and into 2024 with continued elevated near-term recession risks.Read the Full Report

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Contacts

AEW Capital Management

For over 40 years, AEW Capital Management, L.P. (AEW) has provided real estate investment management services to investors worldwide. As one of the world’s largest real estate investment advisors¹, AEW and its affiliates manage $87.0 billion in private real estate equity, debt and listed securities across North America, Europe and Asia (as of June 30, 2025). Grounded in research and experienced in the complexities of the real estate and capital markets, AEW actively manages portfolios in both the public and private property markets and across the risk/return spectrum. AEW and its affiliates have offices in Boston, Los Angeles, Denver, London, Paris, Hong Kong, Seoul, Singapore, Sydney and Tokyo, as well as additional offices in eight European cities. For more information, please visit www.aew.com.

¹Source: “2025 IREI.Q Real Estate Managers Guide”. The Guide, published annually by Institutional Real Estate, Inc., ranks real estate managers based on the gross value of real estate AUM ($m) as of December 31, 2024. As of June 30, 2025. AEW includes (i) AEW Capital Management, L.P. and its subsidiaries and (ii) affiliated company AEW Europe and its subsidiaries. AEW Europe and AEW Capital Management, L.P. are commonly owned by Natixis Investment Managers and operate independently from each other. Total AEW AUM of $87.0 billion includes $42.2 billion in assets managed by AEW Europe and its affiliates, $4.4 billion in regulatory assets under management of AEW Capital Management, L.P., and $40.4 billion in assets for which AEW Capital Management, L.P. and its affiliates provide (i) investment management services to a fund or other vehicle that is not primarily investing in securities (e.g., real estate), (ii) non-discretionary investment advisory services (e.g., model portfolios) or (iii) fund management services that do not include providing investment advice.

Chad Nettleship
Insurance, Investor Relations
chad.nettleship@aew.com

617.261.9485

2 Seaport Lane
Boston, MA 02210

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