2024 FORECAST RELEASE; WHERE ARE PROPERTY TYPE FUNDAMENTALS HEADED IN 2024?
Federal Reserve Increasingly Likely To Achieve Soft Landing
- Slower GDP and labor market growth are expected in 2024
- Easing but positive growth should help bring wages and inflation to more sustainable levels next year
New Supply Pressuring Industrial and Apartment Vacancy
- Rising vacancy in the industrial and apartment sectors is largely driven by new supply, but both property types are expected to record heightened absorption in 2024
- Construction starts are trending lower, a positive for both asset types once the current pipeline begins to clear
Retail and Office Markets Moving in Opposite Directions
- Office vacancy is anticipated to rise sharply in 2024, but some types and locations will still outperform the average
- Retail vacancy is close to record lows entering 2024, and limited supply growth will keep occupancy near that level
Sources: Marcus & Millichap Research Services
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