SVN® International Corp. Economic Update – Keeping our clients up-to-date about the latest real estate landscape trends.

Large funds are expanding their share in the commercial real estate market as traditional lenders retreat due to stricter capital rules and recent regional bank failures. Firms like PGIM, LaSalle, and Brookfield are increasing their credit exposure to logistics, data centers, multifamily apartments, and high-end office properties. Meanwhile, foreclosure activity in the U.S. saw a slight decline in April, and downtown foot traffic in U.S. and Canadian cities has risen, indicating a gradual recovery from the pandemic.

The CMBS delinquency rate spiked in April, primarily due to increases in office, lodging, and retail delinquencies. Lease negotiations in the retail sector are occurring earlier, favoring landlords and suggesting a bullish outlook for asset prices. Inflation showed slight easing in April, driven by shelter and energy costs, while the FOMC held interest rates steady. Additionally, despite a slowdown in hiring, the labor market remains stable, although consumer sentiment has hit a six-month low due to concerns over inflation, unemployment, and interest rates.

Click below to keep reading about the latest updates including the Republic First Bank shutdown, consumer sentiment, the April jobs report, and more!