Ten-X CRE Pulse – August 1, 2019

  • August 01, 2019

Ten-X CRE Pulse highlights key trends and developments in the week that are changing the real estate market landscape.

New Releases

The Ten-X Strategic Insights team released its July Nowcast last week, which showed continued malaise in commercial real estate pricing. For sector and regional details please see the full report.

Cash Considerations

In a widely anticipated move, the Federal Reserve cut interest rates by 25 bps this week. The Fed cited low inflation metrics and global economic uncertainty stemming from trade policy. It is unlikely this marks the beginning of a continued easing cycle, despite persistent pressure from the White House.

Goldman Sachs is raising $2.5 billion for a new real estate fund. The fund will be structured similarly to its former Whitehall property funds that thrived in the late 90s and early 2000s before collapsing during the financial crisis.

On the Home Front

Home price gains decelerated across the country for the 14th consecutive month per the Case-Shiller index. This is unsurprising as affordability concerns are mounting not just on the coasts but in the Midwest as well. Minneapolis is seeking to alleviate housing affordability issues by re-zoning the city, ending single-family zoning and allowing for duplex and triplexes.

Homebuilder Taylor Morrison is the latest to brand out into building single-family rental communities.

Retail Apocalypse Now

Mall owner Simon Property Group has been acutely affected by the wave of retail bankruptcies and the decline in foot traffic such liquidations have spurred. However, the firm is fighting back; after buying Aeropostale, SPG has announced they will continue to use their balance sheet to buy retailers they view as important from a traffic and volume perspective.

Stay tuned for our next weekly pulse for more information on CRE, tech and economic trends!

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