What the Falling Euro Means for the U.S. CRE?
What The Plummeting Euro Means For U.S. CRE Investors
European Economy Faces Uncertainty
Recession fears are growing in Europe, with Eurozone inflation at 9.1%
Russian oil and gas imports are down 35% and 73% respectively, dampening Europe’s productivity
USD Records Surge in Value Relative to the Euro
The Euro-Dollar exchange rate has been falling rapidly, hovering near $1 since summer 2022
As a result, European and global investors are shifting funds into dollar denominated assets, like U.S. CRE
U.S. CRE Viewed As a Safe Bet For Global Investors
U.S. CRE is seen as a more stable investment during periods of global economic uncertainty
Since 2003, European investors have increased capital investments into U.S. CRE by an average of 15% in years when the Euro fell against the U.S. Dollar
*Through 3Q
Sources: Marcus & Millichap Research Services, ECB