Since the early 2000s, more people began favoring walkable urban environments over traditional suburbia. Surprisingly, this shift to urban living did not cause CBD rent growth to outpace the sleepier suburbs.

A common question in the real estate forecasting business is: what city will be the next Austin? Austin has had a growing prominence of professional services, but other cities deserve a close look.

We’ve updated our funding gap estimates in light of the dramatic run-up in yields since June. The funding gap for office has now increased to $82.9 billion, and a $21.7 billion funding gap emerged for multifamily properties.

In the eyes of the international media, San Francisco has become the poster child for “the death of urban retail.” The media’s obsessive focus on Downtown San Francisco, however, masks nuances in the broader Bay Area retail market.

Industrial availability rates are generally below historic norms nationwide, but fundamentals are expected to remain soft through mid-2024.

Many pandemic-accelerated trends are reverting to the mean. Both e-commerce sales and industrial & logistics leasing have moderated and multifamily vacancies in Manhattan are again the lowest nationally. What about office leasing?

Over the past few years, property & casualty insurance has become more expensive and generally less available as certain carriers have withdrawn from states like Florida and California that are seen to be most at risk to climate change effects.

Some logistics occupiers, especially general merchandisers, e-commerce companies and home-improvement retailers, are cutting their space commitments. This is resulting in an uptick in sublease space, particularly for warehouses larger than 300,000 sq. ft.

The housing market is in uncharted territory as affordability is worse than it was at the height of the mid-2000s housing mania while the for-sale inventory is at a multi-decade low. So, what does this mean for commercial real estate?

Recession fears have been top of mind, but an upbeat labor market, the resilient consumer, stronger-than-expected corporate earnings and falling inflation have engendered hopes from some observers of a so-called “soft landing.”

Our H1 2023 Cap Rate Survey results provide clues about how asset pricing has evolved during the year’s first six months.

The headlines say it's time to divest U.S. commercial real estate. But Modern Portfolio Theory finds that the optimal commercial real estate portfolio would include more than 50% exposure to U.S. real estate with the balance favoring APAC.

For the first time since 2006 the retail availability rate across America’s central business districts (CBD) today is higher than in the suburbs. Chalk it up to another enduring effect of the rise of remote work.

With record home prices and rising interest rates, more and more people have chosen to rent. It is likely that mortgage rates will ease in coming quarters providing some relief to homebuyers.

Multifamily vacancy rates, currently hovering near pre-COVID levels, are poised to increase. A moderate recession—which we believe will begin later this year—will temper household formation and lead to higher vacancy in every major market.

Multifamily vacancy rates, currently hovering near pre-COVID levels, are poised to increase. A moderate recession—which we believe will begin later this year—will temper household formation and lead to higher vacancy in every major market.

Transaction activity is down due to wide bid-ask spreads. Meanwhile, REIT implied cap rates have increased sharply, particularly for office space, as manifested in significant discounts to NAV.

The office market has been on its back before. Past experience tells us the preconditions to recovery include a throttling back of the new supply pipeline and painful distress sales that provide necessary price signals.

Migration—both domestic and international—is the most important factor influencing population change within American communities. New Census Bureau data shows how migration has impacted population change in U.S. counties.

The industrial sector saw a 70-basis-point increase in availability in the first quarter. Nevertheless, availability should remain below historic norms for the foreseeable future, a fact that distinguishes industrial from most other property types.

Many multi-asset investors use real estate investment trusts (REITs) to gain or supplement their exposure to property without purchasing the underlying asset. However, over short time-horizons REITs can often mirror the volatility of the broader securities market rather than the steadier, income-driven performance of private equity real estate.

Commercial real estate (CRE) is facing cyclical headwinds. Asset values have eroded this year due to the impact of rising interest rates and cap rates on equity and debt availability and underwriting. The stark interest rate risk has overshadowed CRE fundamentals for the time being. But we expect values will begin stabilizing later this year.

Just as velocity of money (nominal GDP/money supply) is an important driver of monetary inflation, a greater influx of cash flow into commercial real estate (CRE) is a fundamental driver of property value appreciation.

‘Live-Work-Shop’ neighborhoods are providing a silver lining for the beleaguered office sector. Many prominent Live-Work-Shop neighborhoods are outperforming the broader market in which they reside.

Today, according to the Federal Reserve, commercial real estate loans comprise 43% of smaller banks’ assets. Encouragingly, deals were underwritten at more conservative LTVs than in the years before the Global Financial Crisis, and valuations have grown significantly over the past decade— up 42% for multifamily and 14% for office. This provides some cushion for regional banks amid higher cap rates.

Had retail space been overbuilt in previous cycles? Is it just now reaching supply-demand equilibrium?

With the release of the 2020 Census data, we can compare actual versus expected population growth for the 2010-2020 period.

Tech companies account for 40% of total layoff announcements, which are approaching levels of the dot-com-crash era. But many former tech workers are finding new employment quickly with non-tech companies, helping to boost productivity across the economy.

CBRE EA showcases one meaningful chart each week. This week see how office occupancy impacts sales volume.