- Inflation is moving back toward the Fed’s target, and with job growth slowing, the Fed’s focus is shifting to the labor market. This sets the stage for interest rate cuts beginning in September.
- Commercial real estate investment has stabilized, and with the prospect of lower interest rates, H2 2024 and 2025 are likely to see a modest rebound in activity compared to 2023.
- Real estate spot market values bottomed in Q4 2023 for all sectors aside from office, which remains the laggard.
- Though vacancy rates have risen this year for multifamily and industrial, slowing construction sets the stage for stronger fundamentals in 2025 and 2026.
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