Q4 GDP REVISED SLIGHTLY DOWNWARD; CONSUMER SPENDING MOVES HIGHER

Connect CRE

Real U.S. GDP increased at an annual rate of 3.2% in the fourth quarter of 2023, a slightly lower gain than originally estimated, the Commerce Department’s Bureau of Economic Analysis said

Wednesday. The initial estimate called for 3.3% annualized growth.

FED STILL WORRIED CRE POSES RISK TO BANK SYSTEM

Globe St.

The Federal Reserve’s Monetary Policy Report to Congress comes out twice a year. The first one for 2024 suggests a number of things. Two of note for the commercial real estate industry: CRE remains a factor in continued risk to the banking system and interest rates aren’t coming down until the Fed has “greater confidence” that inflation is moving toward 2%.

LOW-VALUE PROPERTIES SHOW PERSISTENT PRICE GAINS

Costar

U.S. commercial property prices in January bumped up against the same hurdles of the prior year: high borrowing costs and a depressed number of property sales that dragged on valuations. But buyers showed a preference for more affordable properties, driving up prices. And the average time on the market got shorter, a positive sign for investment.

INDUSTRIAL RENTS RISE AS NEW PIPELINE REBALANCES

Globe St.

National industrial in-place rents increased by 7.6% year-over-year to an average of $7.74 per square foot in January as the industrial new supply pipeline undergoes a rebalancing, according to CommercialEdge’s February Industrial Report. The national vacancy rate rose 20 bps month-over-month to 4.8% as nationwide, an increase of 80 basis points over the last 12 months.

POWELL REINFORCES POSITION THAT THE FED IS NOT READY TO START CUTTING INTEREST RATES

CNBC

Federal Reserve Chair Jerome Powell on Wednesday reiterated that he expects interest rates to

start coming down this year, but is not ready yet to say when. In prepared remarks for congressionally mandated appearances on Capitol Hill Wednesday and Thursday, Powell said policymakers remain attentive to the risks that inflation poses and don’t want to ease up too quickly.

FEATURED PROPERTIES

At Lee & Associates, our reach is international but our expertise is local market implementation. With offices across the nation and Vancouver, Canada, Lee & Associates is one of the largest and fastest growing commercial real estate organizations in North America. 

Founded in 1979, our experience and expertise offers extensive local market knowledge, seasoned agents, industry leading technology, and a commitment to achieving our clients long-term real estate goals and successes. Lee & Associates understands real estate and accountability, and provides an integrated approach to leasing, operational efficiencies, capital markets, property management, valuation, disposition, development, research, and consulting.

Commercial Real Estate Questions? 

Please Contact:

Steve Malley

smalley@lee-associates.com

858.453.9990

www.lee-associates.com/sandiego