U.S. Capital Markets Glide Path to Clearer Skies

Market positives to keep in mind

Prospects for Investment Ahead

Timing for Rebound Is Near

Underlying Fundamentals CRE fundamentals (outside of office) are strong going into this downturn.

Tremendous capital on the sidelines. Investors need to see more clarity before it deploys, but it's there and poised to fuel strong bounce-back for most sectors.

Historically, property values inflect once the Fed begins cutting rates. Expect a pivot in H1 2024 but could come sooner. Either way, a rebound is not far off..

Sound Lending Cycle The lending environment has remained more disciplined since the GFC. Underwriting standards have been grounded to fundamentals.

Progress & Timing The correction in CRE started mid-2022; this is not the first inning.

Portfolio Allocations Denominator effect – soon to be working in CRE’s favor as equities and fixed income recover.

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