Despite Negative GDP Growth, CRE Remains Well-Positioned as Long-Term Investment

• GDP Contracts for Second Quarter in a Row

  •GDP growth negative in 2Q; Not necessarily a recession

  •Labor market, consumption and manufacturing performed well in 1H 2022

  •Each markets will experience varying headwinds

• Fed Implements Another Aggressive Rate Hike

  •Fed raised overnight rates 75 bps on July 27

  •Aggressive action a response to high inflation

  •Puts overnight rate in 2.25%-2.50% range, on par with July 2019

• Considerations for CRE Investors

  •Fundamentals remain strong for most properties

  •Core economic drivers in place to support property space demand

  •Investors recalibrating strategies to adapt to more fluid investment climate