• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Limon Net Lease Group

Limon Net Lease Group

  • Listings
    • National Listings
    • NYC Metro Listings
  • Who We Are
  • 1031 Exchange
  • Research
  • Financing
  • Services
    • Advisory
    • Capital Markets
    • Marketing
    • Research
    • Technology
  • Contact

Archives for November 2022

Holiday Spending on the Rise, Implications for CRE

November 28, 2022 by Marcus & Millichap Research Services

2023 Holiday Retail Sales; Impacts and Trends Affecting CRE

Status of the Consumer Heading Into Holiday Season

  • Inflation-adjusted retail sales reached an all time high this October, up 21.3% since October 2019
  • Reputable forecasts anticipate a 6% to 8% jump in 2022 holiday sales when compared to last year

Why are Consumers Amplifying Spending?

  • Record employment levels and strong wage growth are part of what is driving the consumption bounce
  • Above-normal savings levels, up nearly $4.4 trillion since the onset of COVID-19, are also aiding the retail sector

Implications for CRE investors

  • Expectations for a record-breaking holiday retail spending points toward boosted performance for discretionary vendors
  • Diverse tenant rosters are critical for investors, as a potential recession in 2023 would favor necessity-based retail, like grocery-anchored centers

*Core retail sales excludes auto and gasoline sales
Sources: Marcus & Millichap Research Services, BEA, U.S. Census Bureau

Watch the Video Below

 

Filed Under: Research Brief

Impact of October Inflation Numbers on CRE

November 21, 2022 by Marcus & Millichap Research Services

How October Inflation Numbers Impact The CRE Outlook

Is Inflation Coming Down?

  • October CPI data came in lower than expected, with producer prices, steel and lumber costs, and shipping expenses falling as well
  • Inflation is well ahead of the target level, and an 8% annual rise in producer prices suggests there are still more costs to be passed onto consumers

Federal Reserve Signals Smaller Rate Increases

  • Chairman Powell has been clear in his commitment to achieving 2% inflation
  • The Fed is expected to raise the overnight rate 50 basis points in December, then adopt a slower pace of rate hikes in 2023

Potential Impacts on CRE

  • More stable expectations are likely to alleviate some of the pressure that has forced investors to recalibrate strategies mid-deal
  • Diminished uncertainty can help reduce the expectations gap between buyers and sellers

*Through October
Sources: Marcus & Millichap Research Services, BLS

Watch the Video Below

 

Filed Under: Research Brief

The Employment Market’s Impact on CRE

November 14, 2022 by Marcus & Millichap Research Services

What The Latest Jobs Data Release Means For CRE Investors

Job Market Sustains Momentum

  • The economy added more than 260,000 positions in October, putting the country on pace for the second strongest job growth year on record
  • While the Fed has mentioned the need to cool job growth, current wage gains are a small part of inflationary pressure

Nuances in The Competition For Workers

  • Small businesses and large companies expanded their payrolls since February 2020, but mid-sized firms shrunk
  • Despite high profile layoffs at tech firms, the labor market is gaining in aggregate, supporting CRE space demand

How this impacts CRE Looking Forward

  • Small business employment growth is poised to support suburban space demand
  • Cooling job numbers in future months may restrain household formation, but the long-term outlook is positive once uncertainty clears

*Through October
Sources: Marcus & Millichap Research Services, BLS

Watch the Video Below

 

Filed Under: Research Brief

Three Takeaways From the Latest FED Meeting

November 7, 2022 by Marcus & Millichap Research Services

November FED Rate Increases Impact On CRE Markets

What Action Did the Fed Take?

  • On November 2nd, the Federal Reserve raised the overnight rate 75 basis points to the 3.75%-4.00% range
  • Inflation remains elevated and the Fed reiterated its commitment to pushing inflation back down to 2%

Forward Looking Expectations Moderate

  • The Fed provided forward guidance to expect further rate increases in December and in 2023
  • Chairmen Powell indicated that future rate increases will likely be smaller but there may be more depending on upcoming inflation data

What CRE Investors Should Be Considering

  • In the past, federal reserve rate increases have translated into higher borrowing costs for investors
  • Smaller and slower rate increases, as suggested by chairmen Powell, could help reduce the buyer-seller expectation gap

*Through November 3
Assumes one 50 bps hike at the subsequent FOMC meeting
Sources: Marcus & Millichap Research Services, Federal Reserve

Watch the Video Below

 

Filed Under: Research Brief

Primary Sidebar

Recent Posts

  • February FED Meeting CRE Implications
  • Three Factors Driving Investor Uncertainty
  • Best Property Types on a Five Year Horizon
  • How the Labor Market is Impacting the Economy
  • What’s in Store For Investors in 2023?

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • March 2020

Categories

  • Agent Opinion
  • Apartments
  • Client Webcast
  • Employment
  • Eviction Moratorium
  • Fox Business
  • GDP
  • Investor Sentiment Survey
  • M&M In the Media
  • Market Report
  • Multifamily
  • Multifamily
  • NYC Metro
  • Outlook Report
  • Research Brief
  • Retail
  • Self-Storage
  • Special Report

Footer

© 2023 Limon Net Leased Group

  • Listings
    • National Listings
    • NYC Metro Listings
  • Who We Are
  • 1031 Exchange
  • Research
  • Financing
  • Services
    • Advisory
    • Capital Markets
    • Marketing
    • Research
    • Technology
  • Contact

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2020 Marcus & Millichap and Limon Net Lease Group

Privacy Policy