How the Election is Already Impacting CRE

Commercial Real Estate Outlook Shifts with Republican Trifecta ​

Election Results Signal Impactful Changes For The Economy ​

• Republicans won control of the house, senate and presidency, suggesting significant policy changes may occur in the near future ​

• Proposed policy changes for tax cuts, tariffs and immigration are likely to impact the economy and commercial real estate landscape ​

• Pace, scale and impact of policy changes remain uncertain, creating both optimism and increased risk among investors ​

Interest Rate Outlook Shifts As Inflation Concerns Grow ​

• The 10-year Treasury yield has risen by 70 basis points since October, due in part to expectations of increased inflation ​

• The recent rise in the 10-year Treasury yield is putting upward pressure on the cost of commercial real estate financing ​

• Proposed tariffs and immigration changes are projected to increase the national deficit, resulting in increased treasury issuance and a slower pace of rate cuts from the Federal Reserve ​

Real Estate Demand Drivers Strong Despite Policy Uncertainty​

• Continued housing shortage and large gap between the cost of renting and buying support long-term outlook for apartments ​

• Consumer strength underpinned by strong household balance sheets, with most having below-average debt and high levels of savings​

*Sources: Marcus & Millichap Research Services, CME Group​

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