The Impact of Congressional Gridlock on CRE
How Could the result of the 2022 Midterms Impact CRE?
Election Results Cause Split Congress
Republicans and Democrats will each control one chamber of Congress following inaugurations in 2023
Split governments generally pass fewer policy changes, resulting in fewer market disruptions
How Do Political Environments Impact CRE Returns?
Historically, real estate returns rise 10.8% on average during years with split sessions, a 250-bps premium over years with one party control
CRE returns recorded strong and weak during each party’s control, but have consistently been higher during periods with divided government
Implications for CRE Investors in 2023
Regardless of the impact of a policy, potential changes impact investors decision making
Investors could have 2 years to lock in strategies with few policy changes affecting their playbooks
*Through 3Q
Sources: Marcus & Millichap Research Services, NCREIF
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