The market is shifting toward one where value is led by real estate fundamentals, but it’s important to “spend time in the tails” as structural changes introduce a broader range of potential outcomes.
Executive Summary
ECONOMY
- Despite a stagnant labor market and policy uncertainty, the U.S. economy remained resilient in the third quarter, supported by strong investment and consumption from AI-related industries and high-income households.
- The Federal Reserve (Fed) is expected to cut rates amid stalled job growth. However, Chair Powell warned of “no risk-free path” as “tensions” persist between employment and price stability goals.
PROPERTY MARKETS
- Fundamentals improved with positive absorption across core property sectors,
supported by lower construction activity. - Performance is dispersed, varying by building quality and location, based on shifting structural demand spanning from higher quality office assets to residential housing solutions for homeownership affordability issues and aging demographics.
You can now read the full whitepaper at the link below
