CRE Exchange: Commercial Real Estate, Property Valuations, Real Estate Analytics and Property Tax

As of this episode (April 30, 2024), approximately 25% of the near 200 publicly-traded REITs in the US have reported their Q1 2024 results. Over the next week, the remaining 75% of REITs will be reporting their results and hosting their earnings calls. During this episode, we share the more interesting highlights we've heard from REITs that have already been reported. We'll go sector by sector, calling out key takeaways that we noted on a handful of these company calls. Key highlights:  02:20 Industrial REIT results. 07:28 Office REIT results. 18:46 Retail REIT results. 27:05 Multifamily REIT results. 32:43 Multifamily adjacent - self-storage results. 36:26 Mortgage REIT results. 38:32 Upcoming REIT earnings calls. 39:13 Upcoming macroeconomic updates. Resources Mentioned: Cole Perry - https://www.linkedin.com/in/coleperry1/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

On this episode of CRE Exchange, we’re joined by Forum Investment Group’s Founder and CEO, Darren Fisk, and Chief Investment Officer, Jay Miller. They discuss the founding of the company; their perspectives and philosophies on multifamily investment; how the company differentiates itself through its team; Forum’s diverse fund strategy and how this strategy has kept them nimble and opportunity-rich over the past few years. Key Takeaways: 00:55 Introducing Darren Fisk and Jay Miller. 02:56 The story behind the founding of Forum Investment Group. 09:12 Forum’s philosophy, evolution and key milestones. 20:02 Team and talent dynamics at Forum. 22:48 From equity to debt — creating and delivering diverse investment strategies at Forum. 27:45 Forum’s approach to identifying and assessing opportunities. 31:49 How are the macro and micro-level impacting Forum’s decision-making process? 33:48 What characterizes Forum’s next phase of growth? 38:13 Are there concerns for the multifamily market? 42:29 Major events or catalysts that Forum’s watching out for. 46:04 If you could snap your fingers and change something in the industry, what would it be? Resources mentioned: Forum Investment Group - https://www.forumre.com/ Darren Fisk - https://www.linkedin.com/in/dfiskforumre/ Jay Miller - https://www.linkedin.com/in/james-miller-0bba47114/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

On this episode, Altus Group's Director of Research, Omar Eltorai, and Senior Market Analyst, Cole Perry, are hosting a special episode of CRE Exchange. They discuss some of the most significant changes and surprises from the latest edition of the CRE Industry Conditions and Sentiments Survey. This quarterly survey is conducted across the US and Canada and provides valuable insights on market sentiment, conditions, metrics and other issues affecting the CRE industry. Key Takeaways: 01:01 What is the CRE Industry Conditions and Sentiment Survey. 01:56 Expectations for recession. 04:07 Shifts in capital deployment. 05:17 Cost of capital expectations for CRE. 07:17 Capital availability for CRE. 08:38 Perception of pricing and competition. 09:59 Operating environment expectations. 10:59 Transaction intentions. 12:56 Top concerns for CRE. 13:50 ESG’s place in CRE. 16:12 Biggest survey takeaway. 19:11 Biggest survey surprise. 22:56 Participating in the survey. Resources Mentioned: Commercial Real Estate Industry Conditions and Sentiment Survey: Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Cole Perry - https://www.linkedin.com/in/coleperry1/ US Q1 2024 results - https://www.altusgroup.com/insights/cre-industry-conditions-and-sentiment-survey-us-q1-2024/ Canada Q1 2024 results - https://www.altusgroup.com/insights/cre-industry-conditions-and-sentiment-survey-canada-q1-2024/ A request for your participation in our quarterly survey Your participation is instrumental in shaping the narrative of the commercial real estate landscape, please support this survey program by sharing your perspective on our next installment of the CRE Industry Conditions and Sentiment survey. Participate in the survey Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

In the latest episode of the CRE Exchange podcast, Altus’ Omar Eltorai, Director of Research, and Cole Perry, Senior Market Analyst, cover Jerome Powell’s recent testimony on Capitol Hill and the SEC climate disclosure walkback. They also discuss last week’s macro data releases, including employment, construction data, beige book and the most recent FDIC quarterly banking profile. They wrap the episode up by touching on what’s happening in capital markets, the banking sector and some notable earnings calls from large retailers. Key Takeaways: (01:37) - Powell’s testimony on Capitol Hill (03:31) - SEC climate disclosure walk back (08:30) - February JOLTS and employment situation (11:27) - Fed Beige Book (18:01) - Construction spending (19:56) - FDIC Quarterly Banking Profile (26:59) - Banking and NYCB (29:26) - Retailer Earnings (34:21) - Upcoming data releases Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

In this episode of CRE Exchange, Cole Perry, Senior Market Analyst of Altus Group, and Omar Eltorai, Director of Research of Altus Group, discuss the overall market’s return to Earth as it moderates its expectations around the pace and magnitude of the Fed rate cuts. The team also discusses PMI, home sales, construction, and REIT earnings that portray a mixed CRE sector whose values and activity continue to be weighed down by the delay in rate cuts. Key takeaways: (00:56) Market expectations for Fed cuts (08:07) Purchasing Manager’s Index (10:31) Existing home sales (11:36) New home sales (12:31) Building permits and new residential construction (14:02) Retail sales (15:04) University of Michigan consumer sentiment index (16:30) Takeaways for the broad market (19:43) REIT performance (22:27) Retailer earnings (27:15) Data releases this week (28:16) Earnings calls this week Resources mentioned: Cole Perry - https://www.linkedin.com/in/coleperry1/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Altus Group - https://www.linkedin.com/company/altus-group/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

We welcome Conrad Madsen, Co-Founder and Partner at Dallas-based Paladin Partners, to this week’s podcast. Conrad shares his journey into commercial real estate, specifically what led him to establish a leading industrial real estate brokerage in North Texas. We also dig into Conrad’s perspective on the industrial real estate sector, discussing Texas’ role as a dominant player in America’s manufacturing reshoring, market drivers for growth and resiliency, and the changing ways tenants use industrial space. Key Takeaways: (02:04) What led Conrad to a career in commercial real estate (03:41) Seeing brokers at Addison Circle provided inspiration (05:47) Getting started as a commercial real estate broker (08:24) Why Conrad chose the industrial sector (10:56) Texas’ advantages in the industrial real estate market (14:46) The founding of Paladin Partners focused on industrial real estate (18:10) Starting the Paladin Partners Foundation for charitable work (21:57) Industrial subsectors and DFW’s role as a logistics hub (25:57) How industrial space is evolving (28:23) Conrad’s optimistic forecast for industrial real estate in 2024 (31:56) The impact of AI and technology on CRE’s future (34:00) Conrad’s wish for a change in the industry: reversing rate hikes Resources Mentioned: Conrad Madsen - https://www.linkedin.com/in/conradmadsen/ Paladin Partners | LinkedIn - https://www.linkedin.com/company/paladin-partners-commercial-real-estate-services/ Paladin Partners | Website - https://paladin-partners.com/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

On this episode of the CRE Exchange, Cole Perry, Senior Market Analyst of Altus Group, and Omar Eltorai, Director of Research of Altus Group, take a look at recent central bank actions across the globe as each major market grapples with whether to hike, hold or cut their rates. Narrowing the lens to US regional banks, they review the latest earnings reports, which continue to contend with CRE-related risk in their portfolios. In addition, they analyze how the latest US macro indicators support an evolving narrative toward a soft landing or no landing for the economy. Key Takeaways: (00:56) Global central banks are pursuing diverse monetary policies. (04:38) December’s PCE and income data indicate strong US consumer spending and potential for a soft economic landing. (05:52) Q4 2023 GDP growth exceeded expectations, driven by strong consumer spending. (07:18) LEI indicates potential economic contraction in Q2 and Q3 2024. (08:52) Consumer sentiment significantly improved in January. (09:54) Home sales declined, reflecting high mortgage rates. (11:48) Regional banks report declining earnings and deposits. (14:22) The airline sector reports increased revenue and strong leisure travel demand. (17:38) Cole discusses the resilience and growth of the grocery sector in post-pandemic retail trends. (19:37) The CRE sentiment survey is live, seeking broad industry participation for comprehensive insights. (20:53) Upcoming economic data releases include consumer confidence, FOMC rate decisions and job market insights. Resources Mentioned: Cole Perry - https://www.linkedin.com/in/coleperry1/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Altus Group - https://www.linkedin.com/company/altus-group/ CRE Industry Conditions and Sentiment Survey Signup - https://www.altusgroup.com/insights/cre-industry-conditions-and-sentiment-survey-register/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

In last week’s CREFC conference, a panelist perfectly captured the initial CRE outlook for 2024 as “not negative.” There's much in those two words but also in what's not being said. On this week’s podcast episode, we recap key themes for the 2023 CRE market, including the importance of monetary policy and the potential potency of technology, also saw capital and credit concerns overshadowing positive factors. Looking ahead to 2024, we discuss the latest macroeconomic indicators covering jobs, inflation, consumer credit, construction spending, rates expectations and more! For a more in-depth recap of 2023's trends, check out the US Monthly Market Update article on the Altus Group website. Key takeaways: (01:06) 2023 market recap. (04:00) Initial themes for 2024. (05:58) December jobs numbers from JOLTS. (09:19) December inflation numbers from the Consumer Price Index and Producer Price Index. (10:22) Consumer credit. (12:59) Construction spending. (15:30) Rate expectations – Fed vs. Market. (16:48) Q4 earnings from the big 4 US banks. (18:34) CREFC conference top takeaways. (23:01) Upcoming data releases and earnings. (24:30) Announcements. Resources mentioned during this episode: Q1 2024 CRE Industry Conditions and Sentiment Survey - https://www.altusgroup.com/insights/cre-industry-conditions-and-sentiment-survey-register/ Job Openings and Labor Turnover Survey (JOLTS) - https://www.bls.gov/jlt/ Consumer Price Index - https://www.bls.gov/cpi/ Producer Price Index - https://www.bls.gov/ppi/ Consumer credit - https://www.federalreserve.gov/releases/g19/current/ Construction spending - https://www.census.gov/construction/c30/pdf/release.pdf CREFC - https://www.crefc.org/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

On this episode of the CRE Exchange podcast, we welcome a special guest, Stephen Buschbom, Research Director of Trepp. Our hosts, Omar Eltorai and Cole Perry, pick Stephen’s brain on a wide spectrum of topics focused on the US commercial real estate debt space. Their discussion covers parallels to past markets, prevalent themes in 2023, predictions on market shifts, performance in 2024, and more. Key Takeaways: (03:39) Stephen’s passion for the CRE asset class (06:54) Background on Trepp (10:27) 2023’s key CRE debt market themes (11:57) Drawing parallels between today’s market and past periods (13:11) Breakdown of the CRE debt space (16:16) Thoughts on what will get transaction activity back up (19:33) Capital availability over the next 12 months (20:29) Areas of risk (21:25) Outlook for 2024 (23:08) Main priority for lenders in 2024 (25:32) CRE debt market performance expectations for 2024 (28:19) How Stephen expects to focus his research in 2024 (30:53) Biggest expected industry changes in the next 3-5 years (32:06) Expected changes to capital stacks in the next 3-5 years (33:02) Career tips for young CRE professionals Resources Mentioned: Stephen Buschbom - https://www.linkedin.com/in/stephen-buschbom-36738a64/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Cole Perry - https://www.linkedin.com/in/coleperry1/ Trepp Website - https://www.trepp.com/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

In a special episode of the CRE Exchange podcast, Altus Group’s Omar Eltorai, Director of Research, and Cole Perry, Senior Market Analyst, reveal some of the most valuable takeaways we gathered from polling almost 500 CRE professionals from the US and Canada for our Q4 2023 CRE Industry Conditions and Sentiment survey. From insights on current conditions around market competition, interest rates and pricing, to outlooks on economic recession, capital availability and transaction activity, you won’t want to miss this knowledge-packed episode. Key Takeaways: (00:19) What is the CRE Industry Conditions and Sentiment Survey? (02:06) Primary focus for CRE firms. (02:54) Current state of market competition. (04:32) 2023 market pricing. (06:50) 2023 cost of financing and interest rates. (09:23) Recession expectations. (11:33) Interest rates over the next 12 months. (12:11) Cost of financing over the next 12 months. (14:12) Top priorities for 2024. (15:19) Who is planning on transacting and what side of the table do they expect to be on? (16:27) Capital availability over the next 12 months. (18:26) Top issues for 2024. Resources Mentioned: Altus Group - https://www.linkedin.com/company/altus-group/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Cole Perry - https://www.linkedin.com/in/coleperry1/ Commercial real estate industry conditions and sentiment survey - US Q4 2023 results - https://www.altusgroup.com/insights/cre-industry-conditions-and-sentiment-survey-us-q4-2023/ Commercial real estate industry conditions and sentiment survey - Canada Q4 2023 results - https://www.altusgroup.com/insights/cre-industry-conditions-and-sentiment-survey-canada-q4-2023/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

In this episode, hosts Omar Eltorai, Director of Research, and Cole Perry, Senior Market Analyst, both of Altus Group, talk to Adriana de Alcantara, Senior Managing Director of Hines and Fund Manager for Hines US Property Partners, Hines’ flagship core plus open-end fund. They explore a range of topics, offering a dive into Adriana’s career, Hines’ fund strategy and the current trends and outlook for the commercial real estate industry. Key Takeaways: (00:34) The unique journey Adriana made from Brazil to the US which enriched her global real estate perspective. (04:37) The US market’s dynamic nature, from consumer habits to the longevity of properties. (09:15) Embracing diversity in CRE. (11:14) The current market environment analysis and technology’s role in transforming the industry. (17:04) Insights into the operation and strategy of Hines US Property Partners. (20:06) Adriana’s approach to managing next-generation assets and diversified portfolios. (25:09) The process of identifying and measuring top-performing markets. (27:19) The evolving landscape of office spaces and the future of mixed-use developments. (29:54) The increasing importance of sustainability in real estate and its impact on investment value. Resources Mentioned: Hines US Property Partners Overview Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

In the latest episode of the CRE Exchange podcast, Omar Eltorai, US Director of Research, and Cole Perry, Senior Market Analyst of Altus Group, discuss the latest FOMC minutes and the probability of a final rate hike for the year, findings from the Federal Reserve’s Survey of Consumer Expectations (SCE) on credit access, which indicates a decline in expectations for credit availability, the increase in permits and starts for multi-family housing, mixed news from major retail chains with a glimpse of hope for the holiday season, and much more! Key Takeaways: (00:58) The latest US Leading Economic Index (02:12) FOMC minutes (Nov. 21 release) with odds for an interest rate hike before end of year (04:46) A view into consumer expectations for credit demand and credit approval (10:26) The latest read on building permits, housing starts and home sales (13:21) Earnings reports from Walmart, Target, Macy’s, TJX, Home Depot and Lowes (22:31) Capital markets update (26:43) Q4 2023 CRE Industry Conditions and Sentiment Survey results (34:26) Upcoming data releases Omar and Cole are keeping an eye on over the next two weeks Resources Mentioned: Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Cole Perry - https://www.linkedin.com/in/coleperry1/ Altus Group - https://www.linkedin.com/company/altus-group/ US Leading Economic Index - https://www.conference-board.org/topics/us-leading-indicators SCE Credit Access Survey - https://www.newyorkfed.org/microeconomics/sce/credit-access#/ FOMC minutes - https://www.newyorkfed.org/microeconomics/sce/credit-access#/ US and Canada CRE Industry Conditions and Sentiment survey results (Q4 results to be released December 5, 2023) - https://www.altusgroup.com/insights/cre-industry-conditions-and-sentiment-survey-register/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

In the latest episode of the CRE Exchange podcast, Altus Group’s Cole Perry, Senior Market Analyst, and Omar Eltorai, Director of Research, take on the latest economic developments and their impact on CRE. They dive into the recent policy rate announcements by the global central banks, lending trends from the lens of SLOOS, house price trends, REIT earnings and more. Key Takeaways: (00:56) Analysis of recent policy rate announcements by global central banks and their implications on the market. (04:43) A discussion of how inflation and interest rates impact consumer sentiment in the US. (07:21) Trends in bank lending based on the SLOOS. (13:30) Analysis of the FHFA house price index and Case-Shiller index in the context of housing market trends. (16:40) Fluctuations in Treasury yields and mortgage rates, and the implications for the housing market. (17:36) The negative yield curve is an indicator of potential economic downturns. (19:43) Highlights from recent earnings calls of major REITs and their market performance. (25:28) A preview of upcoming analyses on remote work trends and their impact on office markets. Resources Mentioned: Cole Perry - https://www.linkedin.com/in/coleperry1/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Altus Group - https://www.linkedin.com/company/altus-group/ Federal Reserve’s Federal Open Market Committee Minutes - https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm FHFA House Price Index - https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index.aspx S&P Case-Shiller Home Price Index - https://fred.stlouisfed.org/series/CSUSHPISA Senior Loan Officer Opinion Survey (SLOOS) - https://www.federalreserve.gov/data/sloos/sloos-202307.htm University of Michigan Consumer Sentiment Index - http://www.sca.isr.umich.edu/ Measuring remote work impact on office uncertainty - https://www.altusgroup.com/insights/measuring-remote-work-impact-on-office-uncertainty/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

On this week’s episode of the CRE Exchange podcast, Cole Perry, Senior Market Analyst, and Omar Eltorai, Director of Research, both at Altus Group, break down the current economic conditions, focusing on the Federal Reserve’s reports, GDP releases and key insights from the housing, industrial, retail, office, and banking sectors. Key Takeaways: (01:05) Analysis of the Federal Reserve’s Beige Book: subdued commercial real estate activity. (02:15) Challenges faced in the office sector, in leasing, rent and valuations. (03:40) US Real GDP’s annualized growth reached 4.9% for Q3 2023. (06:06) Update on retail sales and consumer spending. (08:37) Housing market trends — home sales, supply, mortgage rates and what it means for multifamily. (10:33) The latest on large banks’ earnings and the appetite for commercial real estate lending. (14:04) Asset managers signal that dry powder is primed for opportunistic CRE investment. (16:30) Brokerages’ shift from 2022 expansion to 2024 cost reduction. (17:52) Interesting themes across industrial, office and retail sectors. (24:41) Announcements: State of the market Canada edition and Altus ODCE webinars. Resources Mentioned: Cole Perry - https://www.linkedin.com/in/coleperry1/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Altus Group - https://www.linkedin.com/company/altus-group/ Federal Reserve’s Beige Book - https://www.federalreserve.gov/monetarypolicy/files/BeigeBook_20231018.pdf Webinar recording: US State of the Market - https://www.altusgroup.com/webinars/us-state-of-the-market-quarterly-analysis/ Upcoming webinar: NCREIF ODCE Index - Q3 2023 analysis - https://www.altusgroup.com/webinars/ncreif-odce-index-quarterly-analysis/ Upcoming webinar: Canada State of the Market - https://www.altusgroup.com/webinars/canada-state-of-the-market/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

On this episode, Cole Perry, Senior Market Analyst, and Omar Eltorai, Director of Research, both of Altus Group, navigate various compelling topics that have recently been in the spotlight. They unpack the latest inflation and job market numbers, provide insights from the Federal Reserve's minutes and consider indicators of small business optimism. This episode provides insightful critical analyses and reflections on the state of the economy and the CRE market. Key Takeaways: (01:08) A close look at the U.S. consumer price index and its rise in September. (01:55) September's employment report reveals strength across the labor market. Nonfarm payrolls and other key metrics shed light on the current state of employment. (08:33) JP Morgan, Wells Fargo and Citigroup's recent performances are discussed — highlighting significant growth in earnings and revenue. (11:22) A brief touch on the performances of PNC and the airline industry, particularly United and Delta. (13:10) From U.S. bank capital regulations to the ECB's increased scrutiny on CRE loans in Europe, the episode covers crucial regulatory shifts and their implications. (16:29) Insights from the Walker & Dunlop Most Insightful Hour in CRE and the State of the Market webinar provide a holistic view of current market dynamics. (21:05) The resilience of regional malls and the evolving work-from-home trends are examined, offering a window into changing consumer and workforce behaviors. Resources mentioned: Cole Perry - https://www.linkedin.com/in/coleperry1/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Altus Group - https://www.linkedin.com/company/altus-group/ Altus Group’s US Commercial Real Estate Industry Conditions and Sentiment Survey - https://www.altusgroup.com/insights/cre-industry-conditions-and-sentiment-survey-register/ Federal Reserve's Federal Open Market Committee Minutes - https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm NFIB Small Business Optimism Index Report - https://www.nfib.com/content/press-release/economy/small-business-optimism-dips-in-september-as-inflation-remains-top-problem/ State of the Market Webinar Replay - https://www.altusgroup.com/webinars/us-state-of-the-market-quarterly-analysis/ Young Real Estate Professionals of New York - http://www.yrepny.org/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

On this week’s episode of the CRE Exchange podcast, Cole Perry and Omar Eltorai, both of Altus Group, cover the latest US economic print, including consumer signals from Costco, CarMax and Carnival’s earnings reports. Additionally, they discuss the current housing trends in San Francisco and the rest of the country. Lastly, they share some observations from the CREFC Capital Markets Conference which took place last week.  Key Takeaways: (01:13) Core PCE inflation was up 3.9% year-over-year in August 2023, the smallest monthly increase since November 2020. (02:29) Bank credit card delinquency rates are at the highest level in more than a decade. (8:41) The FHFA House Price Index and the S&P Case-Shiller Home Price Index reached their respective highs in August 2023. (12:42) Securitization markets are still functioning despite seeing a few down quarters. (13:00) Banks are better capitalized and better positioned than they have been heading into historical down cycles. (14:02) Credit concerns will likely take time to work out, possibly years. (14:51) The FDIC is selling a large portion of the Signature Loan portfolio, which is heavily New York and multifamily. (15:15) The San Francisco office market faces challenges, but the long-term outlook is positive. Resources Mentioned: Cole Perry - https://www.linkedin.com/in/coleperry1/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Altus Group - https://www.linkedin.com/company/altus-group/ FHFA House Price Index - https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index.aspx S&P Case-Shiller Home Price Index - https://fred.stlouisfed.org/series/CSUSHPISA Email: altusresearch@altusgroup.com Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

On this week’s CRE Exchange, Cole Perry, Senior Market Analyst, and Omar Eltorai, Director of Research, both of Altus Group, tackle FOMC’s decision on rates, current trajectories for building permits and home starts, potential consumer demand signals from four recent earnings reports, WP Carey’s shift in investments, Airbnb’s predicament with NYC’s Local Law 18, looming threats of a government shutdown and a sneak peek into critical upcoming market indicators. Key Takeaways: [00:55] Latest news from the FOMC: Rates hold, but expectations of higher for longer persist. [03:18] US and Canada housing starts and building permits diverge — is it a blip or just a lag? [06:27] KB Homes’ earnings report confirms a tough environment for home sales but a silver lining around consumer attitudes toward smaller homes. [10:51] Three major companies, three indications of weakening consumer demand. [16:12] WP Carey’s Investment Evolution: WP Carey plans to exit office spaces and reallocate investments into essential retail, industrial warehouses and self-storage assets. They introduce the Net Lease Office Properties REIT. [18:41]The Airbnb Challenge in NYC: NYC experienced a 77% drop in Airbnb listings due to Local Law 18, potentially reviving the traditional hotel sector in Manhattan and providing other major cities with a glimpse into how similar laws could impact their short-term rental markets. [21:37] Implications of a Government Shutdown: Apprehensions and discussions concerning a looming shutdown, potentially disrupting crucial economic metrics. [22:56] Market Pulse: Upcoming market indicators and corporate earnings calls, such as Costco, CarMax, and Carnival Cruise Lines, offer insights into evolving market trends. Resources Mentioned: Cole Perry - https://www.linkedin.com/in/coleperry1/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Altus Group - https://www.linkedin.com/company/altus-group/ Financial reports from WP Carey - https://s29.q4cdn.com/223055717/files/doc_earnings/2023/q2/earnings-result/W-P-Carey-Inc-Announces-Second-Quarter-2023-Financial-Results.pdf Local Law 18’s impact on Airbnb listings - https://therealdeal.com/new-york/2023/06/13/nyc-postpones-enforcing-short-term-rental-law/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

In the latest episode of the CRE Exchange, Cole Perry, Altus Group’s Senior Market Analyst, and Omar Eltorai, the Director of Research, evaluate the most recent economic indicators, including Small Business Optimism Index, CPI, PPI and business inventory levels. They analyze how these numbers could potentially impact the commercial real estate market. Key Takeaways: [1:24] What the NFIB Small Business Optimism Index indicates about US small businesses’ appetite for investment in real estate. [2:28] Whether the latest CPI and PPI numbers give us an idea of what the Fed and central banks will do next to address inflation. [4:56] What may be in store for the industrial sector based on the recent retail and business inventory numbers. [7:42] Whether higher prices and lower supplies of single-family homes may be in our future. [12:17] What’s on Omar and Cole’s watchlist over the next week Resources Mentioned: Cole Perry - https://www.linkedin.com/in/coleperry1/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Altus Group - https://www.linkedin.com/company/altus-group/ NFIB Small Business Optimism Index - https://tradingeconomics.com/united-states/nfib-business-optimism-index Consumer Price Index (CPI) - https://www.bls.gov/news.release/cpi.nr0.htm Producer Price Index (PPI) - https://www.bls.gov/news.release/ppi.nr0.htm Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

On this week’s episode of the CRE Exchange podcast, Cole Perry, Senior Market Analyst, and Omar Eltorai, Director of Research, both at Altus Group, delve into recent consumer credit trends, Kroger’s strategic shifts, and the implications of new rental regulations in NYC. Key Takeaways: - [00:06:38] Consumer Credit Surge: A significant rise in consumer credit in July, emphasizing the role of credit card debt. - [00:06:54] Inflation’s Impact: Delving into how inflation is affecting consumer spending habits and the broader economy. - [00:07:13] Kroger’s Financial Performance: Insights from Kroger’s recent earnings call, investment moves and the potential implications for the retail landscape. - [00:09:27] Short-Term Rental Regulations in NYC: A deep dive into New York City’s new regulations and their potential impact on the short-term rental market. - [00:13:27] US CRE industry conditions and sentiment: Our Q3 2023 results are in. - [00:18:43] What we’re keeping an eye on this week. Resources Mentioned: Cole Perry - https://www.linkedin.com/in/coleperry1/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Altus Group - https://www.linkedin.com/company/altus-group/ Altus Group’s US Commercial Real Estate Industry Conditions and Sentiment Survey - https://www.altusgroup.com/insights/cre-industry-conditions-and-sentiment-survey/ Altus Group’s Canada Commercial Real Estate Industry Conditions and Sentiment Survey - https://www.altusgroup.com/insights/cre-industry-conditions-and-sentiment-survey-canada/ NYC Law 18 - https://www.nyc.gov/site/specialenforcement/registration-law/registration-rules-and-laws.page Federal Reserve’s Beige Book - https://www.federalreserve.gov/monetarypolicy/beigebook202309.htm Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property

On this week’s episode of the CRE Exchange podcast, Cole Perry, Senior Market Analyst at Altus Group, and Omar Eltorai, Director of Research at Altus Group, review the latest slew of policy rates, economic indicators and market data points impacting the US commercial real estate industry. Key Takeaways: [00:53] Market signals supporting a “softer landing” narrative for the economy. [06:10] Limitations on market optimism within the real estate sector. [08:34] Office lease rollover: the potential implications for some of the largest US office markets. [11:27] Upcoming policy rate decisions from the Reserve Bank of Australia and the Bank of Canada and what they may mean to global central bank monetary policies. [12:15] Top economic indicators to watch this week. Resources mentioned: Cole Perry - https://www.linkedin.com/in/coleperry1/ Omar Eltorai - https://www.linkedin.com/in/omareltorai/ Altus Group - https://www.linkedin.com/company/altus-group/ Reserve Bank of Australia - https://www.rba.gov.au/ Bank of Canada - https://www.bankofcanada.ca/ Federal Reserve’s Beige Book - https://www.federalreserve.gov/monetarypolicy/publications/beige-book-default.htm Near-term rollover risk endangers major office markets - https://www.altusgroup.com/insights/near-term-rollover-risk-endangers-major-office-markets/ Thanks for listening to the CRE Exchange podcast, powered by Altus Group. If you enjoyed this episode, please leave a review to help get the word out about the show. And be sure to subscribe so you never miss another insightful conversation. #CRE #CommercialRealEstate #Property