Real Estate Resilient; Headwinds Weigh On GDP in Third Quarter
- Economic recovery downshifts in third quarter. GDP expanded at a 2.0 percent annualized rate in the third quarter as myriad headwinds weighed on growth.
- Key commercial sectors unfazed by the slowdown. Industrial assets remain in high demand from logistics firms, suppliers and retail back-end operations.
- Outlook improves for challenged real estate. Although not as influential as in the second quarter, services were a net positive to GDP growth in the third period.
Short-Term Issues to Fade
- Economy has potential to break out. While significant, the anchors on economic growth are fixable and, given time, will be sorted.
- Labor market needs to expand. Currently, more than 10 million jobs are available across the country at a time when unemployment is below 5 percent.
Sources: Marcus & Millichap Research Services; Bureau of Economic Analysis; Bureau of Labor Statistics; U.S. Census Bureau