Visualizing the Real Estate Landscape - December 2021 - CBRE Econometric ...
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Visualizing the Real
Estate Landscape
EA CHARTBOOK December 2021
MATT MOWELL
ECONOMETRIC ADVISORS
Visualizing the Real Estate Landscape | EA Chartbook
Activity is picking up moving into the holiday season
Weekly Leading Indicator Index Week beginning on March 2nd = 100, weekly frequency
120 110 120.0
100 100.0
110
90
80.0
100 80
60.0
70
90 40.0
60
50 20.0
80
40 0.0
70
60 Hospitality employment index, -3 weeks (LHA)
Restaurant traffic Index
TSA passenger count
New York Federal Reserve OpenTable, Kalibri Labs, Transportation Security Administration.
- Most economic indicators began trending upward in September / October after the summer Delta variant suppressed activity.
- Demand for consumer services picked up in the autumn, albeit the prospect of heightened COVID-19 cases and new variants pose notable risks.
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What is driving inflation?
CPI, Y-o-Y change (%) and contribution from key components
7
- The uptick in commodity prices and
6
supply bottlenecks suggests inflation
5
could accelerate further than expected in
the near-term. 4
3
2
- Rising fuel and auto costs are pushing up
transport costs. Similarly, rising fuel 1
prices, along with apartment rents, is 0
pushing up the housing component of -1
CPI. -2
-3
2014 2015 2016 2017 2018 2019 2020 2021
Housing Food & Beverages Transport Other Medical Care CPI
U.S. Bureau of Labor Statistics
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A deeper dive into housing and transport costs
Y-o-Y change in housing components of CPI (%) Y-o-Y change in transport components of CPI (%)
12 120
100
10
80
8
60
6 40
20
4
0
2
-20
0 -40
-60
-2
2017 2018 2019 2020 2021
2017 2018 2019 2020 2021
Total transport Air fare Fuel Car rental Used cars New vehicles
Housing Shelter Fuels & Utilities Furnishings & Operations
U.S. Bureau of Labor Statistics U.S. Bureau of Labor Statistics
- Higher commodity prices are permeating several consumer spheres, such as housing and transport.
- Rising apartment rents and heating costs are pushing up housing prices.
- Gasoline price and new car costs are pushing transport costs. Meanwhile, air fare costs are declining.
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Supply bottlenecks remain a problem for the global economy
Commodity price index (2012 = 100) Unfilled goods orders index (2020=100)
250 160 200
150
175
200 140
130 150
150
120
125
110
100
100 100
50 90
75
80
0 70 50
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fabricated metals Transport equipment
Natural gas Cotton Brent Heating / A.C. Household appliances
Energy Information Administration, OPEC, Natural Resources Canada, Intercontinental Exchange. U.S. Census.
- There is a lag between rising energy demand and when oil & gas producers can bring on more production capacity. This is causing prices to
spike as the Northern Hemisphere moves into the winter months.
- A shortage of feedstock is causing manufacturing backlogs, especially for durable goods.
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Markets expect inflation to be heightened in the near-term
Yield curve across 2021 (%) Spread between 10-year and 5-year Treasury yields (ppts)
2.5 1.0
0.9
2.0 0.8
0.7
1.5 0.6
0.5
1.0 0.4
0.3
0.5 0.2
0.1
0.0 0.0
5 10 15 20 25 30
7/26/2021 1/4/2021 11/22/2021 9/13/2021
U.S. Federal Reserve Macrobond
- The yield curve has flattened in recent months as expectations for near-term inflation are heightened.
- Treasury markets appear to be pricing in multiple rate hikes for 2022.
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A tight job market will put upward pressure on prices
Employment Cost Index, Q-o-Q change (%) Leisure & hospitality, avg. hourly earnings Job openings rate (%)
3.0 17 12
10
2.5
16
8
2.0
6
15
1.5 4
1.0 14 2
0
0.5 13 2000 2004 2008 2012 2016 2020
2018 2019 2020 2021
0.0 Job openings rate, Leisure & Hospitality (%)
1980 1985 1990 1995 2000 2005 2010 2015 2020
Counterfactual Leisure & Hospitality (RHA)
Job openings rate, Total (%)
U.S. Bureau of Labor Statistics. U.S. Bureau of Labor Statistics. U.S. Bureau of Labor Statistics.
- Rising labor costs are also exerting upward pressure on CPI. Indeed, the Employment Cost Index posted the greatest quarterly growth in Q1 since the early 1980s.
- Wage acceleration has been most significant within the leisure & hospitality sector, in which average hourly wages have now exceeded their pre-pandemic trend.
The cause of this wage spike is a significant mismatch between supply and demand evidenced by the heightened job openings rate in the leisure & hospitality
space.
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There are several factors driving the labor shortage
Labor force participation rate index by age, February 2020 = 100 Reasons people are not working (millions)
101 9
100 8
99 7
98 6
97 5
96 4
95 3
94 2
Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19 Apr-20 Jan-21 Oct-21 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21
25-54 years 55+ years Fear of COVID-19 Child Care
U.S. Bureau of Labor Statistics. U.S. Census Household Pulse Survey.
- Explanations for the labor shortage include a reported uptick in ‘Boomers’ choosing to retire. Evidence for this includes very sluggish labor
market participation amongst the 55+ age cohort.
- Many are not working due to childcare issues, which could explain why female labor force participation has been stagnant.
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Home sales remain down from their late 2020 peak
Home sales, millions Mortgage application index
6.5 1,500
6.0
5.5 1,250
5.0
1,000
4.5
4.0
750
3.5
3.0 500
2.5
2.0 250
2005 2007 2009 2011 2013 2015 2017 2019 2021 2005 2007 2009 2011 2013 2015 2017 2019 2021
National Association of Realtors, Federal Reserve, Mortgage Bankers Association. National Association of Realtors, Federal Reserve, Mortgage Bankers Association.
- Single-family sales and mortgage applications have stalled due to lack of for-sale product and poor affordability.
- It is unlikely that home sales and its ancillary activity (e.g., furnishing sales) will be a major contributor to economic growth in the very near-
term. Current market conditions are fertile ground for single-family, for-sale housing development.
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Factors suppressing housing stock and affordability
# of homebuilding outfits & employees (000s) Housing starts per 100k households Number of months supply of homes for sale
70 300 5,000 12
60 250 10
4,000
50
200 8
40 3,000
150 6
30 2,000
100 4
20
50 1,000
10 2
0 0 - 0
2002 2007 2012 2017 1990 1995 2000 2005 2010 2015 2020 1985 1990 1995 2000 2005 2010 2015 2020
# of Establishments Employees (RHA) Atlanta Phoenix US Los Angeles Existing single-family homes months supply
Long-term average, months supply
U.S. Economic Census. Oxford Economics, CBRE EA.. National Association of Realtors.
- In the wake of the Global Financial Crisis (GFC) many small contractors went out of business and craftsmen found new careers.
Consequently, U.S. homebuilding capacity remains suppressed relative to the early-2000s.
- Housing starts per 100K households remains quite low relative to history and even in sprawling, Sunbelt metros that traditionally have
limited planning and zoning regulations.
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Labor market slack is more notable on the coasts
Current unemployment rate relative to February 2020 levels (percentage points)
- Cities with strict social distancing rules 6
(e.g., New York, Los Angeles) saw the
5
greatest labor market disruption. Further,
places with a sizable hospitality sector 4
(e.g., Las Vegas, Orlando, New Orleans)
3
continue to suffer heightened
unemployment rates. 2
1
- Conversely, places with a more laissez-
faire approach to social distancing saw 0
less damage to local labor markets. (1)
Washington
San Antonio
Richmond
San Francisco
Buffalo
Charlotte
Salt Lake City
Kansas City
Sacramento
Denver
Boston
Philadelphia
Houston
Austin
Orlando
San Jose
Baltimore
Indianapolis
Boise
Columbus
Honolulu
Las Vegas
Chicago
Newark
Riverside
San Diego
Hartford
Providence
Detroit
New York City
Memphis
Dallas
Portland
Milwaukee
Minneapolis
Louisville
St. Louis
New Orleans
Miami
Cincinnati
Durham
Nashville
Los Angeles
Seattle
Pittsburgh
Albuquerque
Cleveland
Raleigh
Phoenix
Oklahoma City
Atlanta
West Pacific East Midwest South
U.S. Bureau of Labor Statistics.
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Real estate valuations have whipsawed!
Composition of all property returns (%)
25
20
15
10
5
0
-5
-10
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Appreciation Return Income Return Total Return
NCREIF.
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Industrial and apartment properties are driving NCREIF returns
Sector composition of all-property total returns (%)
30
25
20
15
10
5
0
-5
-10
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Apartment Hotel Industrial Office Retail
NCREIF. Due to compounding factors among the components of total returns, values on this chart will slightly differ from the previous chart.
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Investment activity is recovering, and cap rates are trending down
Quarterly sales volume by property type (billions) Asset class yield (%)
$180 9
$160 8
$140 7
$120 6
5
$100
4
$80 3
$60 2
$40 1
$20 0
$0
NCREIF cap rate US Treasury (10Y)
Office Industrial Retail Apartment AAA-rated corporate yield Baa-rated corporate yield
Real Capital Analytics, CBRE EA. NCREIF, CBRE EA.
- The sturdy prospects for apartment and industrial properties are driving growth in commercial sales volume.
- Further, pricing for trades is holding firm; however, evidence suggests that buyers are generally focused on higher quality properties.
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Signals from the REIT market suggest a soft office market
NAREIT price return index by property type, 2016 = 100
- The REIT market provides some insight 400
into how private equity real estate has
performed. 350
300
- The single-family rental REIT index has
solidly outperformed multifamily rentals 250
and was only bested by the industrial
REIT index. 200
150
- Indirect office performance has not kept
pace with the broader group in recent 100
quarters.
50
0
2016 2017 2018 2019 2020 2021
NAREIT, Macrobond
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Office rents will struggle for the foreseeable future
Rent index, 2020 Q1 = 100
135
130
125
120
115
110
105
100
95
90
85
2020 2021 2022 2023 2024 2025 2026
Office Apartment Industrial Retail
CBRE EA
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Industrial and apartment pricing has driven new development
Square feet (units) underway as a share of market inventory (%)
- Supply represents a near-term threat to 7.0
the office market but in the long run,
developers are likely to show restraint 6.0
amid uncertainty around virtual work.
5.0
- Industrial supply has made an upside 4.0
breakout in late 2020 as developers
responded to an onslaught of logistics 3.0
demand.
2.0
- Like industrial, the apartment market is 1.0
seeing an increase in development as
-
occupancies and rents trends back to 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
pre-COVID levels.
Apartment Office Industrial Retail
CBRE-EA
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Consumers continue to shift around spending
Month-on-month retail sales change, September (%) Retail sales index, February 2020 = 100
150
Gasoline
130
Electronics 110
Building Materials 90
70
Home Furnishings
50
Retail Sales 30
Sporting Goods 10
-10
Food and Drinking Places Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21
Clothing Food and Drinking Places Sporting Goods
Clothing Home Furnishings
-1.0 0.0 1.0 2.0 3.0 4.0 5.0 Building Materials
CBRE EA CBRE EA
- Consumers spent more on durables, barring gasoline, and less on services in September. Monthly spending patterns are poised to osculate
with public health trends.
- Many households continue to dedicate more money to sporting goods and building supplies.
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There is less pent-up spending demand from savings
Personal savings rate (%)
30
25
20
15
10
5
0
1947 1952 1957 1963 1968 1973 1979 1984 1989 1995 2000 2005 2011 2016 2021
CBRE EA
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Consumer sentiment surveys and sales are not aligned
Core retail sales, Y-o-Y (%) and the Consumer Sentiment index
50 120
40 100
30
80
20
60
10
40
0
-10 20
-20 0
2015 2016 2017 2018 2019 2020 2021
Core retail sales, Y-o-Y (LHA) Consumer Sentiment Survey
University of Michigan, U.S. Census
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Chain bankruptcies are pushing up lifestyle & mall availability rates
Availability rate by retail center type (%)
- Rising chain store bankruptcies have 14
caused the Lifestyle & Mall and Power
Center availability rate to increase in 12
recent years.
10
- COVID-19 caused an uptick in 8
neighborhood center availabilities as
some small businesses permanently 6
closed.
4
2
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Neighborhood, Community & Strip Lifestyle & Mall Power Center
CBRE EA.
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Retail development will likely remain much lower than previous cycles
Retail completions per quarter, square feet (000s)
4.5
4.0
3.5
3.0 28.9 million SF of retail space
delivering per quarter, 2005-08
2.5
2.0
1.5 6.2 million SF of retail space
delivering per quarter, 2010-20
1.0
0.5
0.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Neighborhood, Community & Strip Lifestyle & Mall Power
CBRE EA.
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There is relative opportunity for the retail sector
NOI growth outlook relative to pricing
- Increased retail sales, including at brick- NOI CAGR, 2021.4 – 2024
and-mortar stores, have supported 6.0
shopping center fundamentals. This has
raised the prospects for NOI growth, 5.0 Apartment
whilst cap rates remain relatively high.
4.0 Industrial
- The upshot is that some well-positioned 3.0
retail properties could shine in terms of
investment performance. 2.0
Retail
1.0
0.0
Office
-1.0
4.0 4.2 4.4 4.6 4.8 5.0 5.2 5.4 5.6 5.8 6.0
Cap rate (%)
CBRE-EA.
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Logistics leasing favors modern, high clear-height properties
Absorption / inventory by property ceiling height (%)
- Much of the leasing has been 12
concentrated in modern space to
accommodate very efficient e-commerce 10
platforms. 8
6
- Specifically, many of these high clear-
height properties are clustered in the 4
nation’s largest logistics markets, such as
2
the Inland Empire, Eastern PA and
Chicago. 0
-2
-4
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
0-20 21-30 31-40
Source: CBRE EA.
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E-commerce growth will slow but will remain much larger post-COVID-19
Index of e-commerce sales, 2002 = 100
3,000
2,500
COVID-19 accelerated e-
commerce sales by over
2,000
50% from 2020q1 through
the end of the year.
1,500 Since the nadir of the Global In coming years
Financial Crisis e-commerce households are expected
activity grew four-fold! to shift some
1,000
consumption back to
brick-and-mortar but
500 many newly formed
shopping habits will
remain.
-
2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
2002 - 2008q3 Global Financial Crisis Recovery COVID-19 Post-COVID-19
Source: CBRE EA.
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The composition of industrial leasing is shifting
Industrial lease transactions, deals 100,000 SF and above by tenant type
- 3PLs account for a greater share of Millions, SF
leasing activity, as small retailers are 200
likely outsourcing distribution to
overcome space and manpower 150
shortages. 100
50
- Meanwhile, e-commerce activity is
slowing down. The cause could be that 0
digital sales growth is simply from its epic
2020 pace.
- The e-commerce slowdown could be
fueling demand from large brick-and-
mortar retailers.
2021 2020
CBRE Americas Research *Compares new lease and renewal transactions from January through October.
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Industrial construction is partly following population growth
Top 20 markets for logistics space is underway as a share of inventory (%)
- Many smaller industrial markets, such as 20
Austin, San Antonio, and Nashville, are 18
seeing new warehouse product to service
16
a growing population base.
14
12
- Meanwhile, major logistics hubs, such as 10
Dallas, Allentown, and Riverside, are also
8
seeing significant inventory growth.
6
4
- Wilmington, Delaware has increased
2
activity from a seaport expansion and the
0
development of a large distribution
center for a prominent e-commerce
company.
Source: CBRE EA.
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How virtual work has changed our outlook for office fundamentals
Historic and forecast vacancy rate (%) Office absorption and employment (000s)
20 25,000 50,000
40,000
18
20,000 30,000
16 20,000
15,000 10,000
14
-
12 10,000 (10,000)
10 (20,000)
5,000 (30,000)
8
(40,000)
6 - (50,000)
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023 2026 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023 2026
Vacancy Long-Term Average Absorption, SF (LHA) Office-Using Employment
CBRE EA. CBRE EA.
- The adoption of virtual working has changed our view of the market. We believe office workers will spend approximately one-quarter less time at the office, on average. The
overall net impact of more virtual work is that 9% less office space will be needed per employee.
- The decisions will play out over time as existing leases expire and office attendance levels are more fully elevated. The impact of virtual working also will be offset by sturdy
office-using job creation.
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It will be a tenant’s market for the next several years
Estimated EA Asking Rent ($/SF)*
- Overall, we expect gross asking rents to
fall by just over 7% as occupiers delay 40
leasing decisions and give space back.
35
- The recovery in rents should begin by
2022. A full recovery to pre-pandemic
rent levels should occur mid 2024. 30
25
20
Note: EA Asking Rents are new, cutting-edge gross asking
15
rent series that has been developed in partnership with EA
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020 2023 2026
co-founder and MIT economist, Bill Wheaton. These
estimated rents are based upon a repeat rent method which
makes them the most reliable indicator of how rents have CBRE EA.
changed over time.
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Office-using employment has generally recovered from the pandemic
Office-using employment Employment level relative to Q4 2019, percentage difference (%)
25,000 8 30
25
6 20
20,000 15
4 10
5
2 0
15,000
-5
0 -10
10,000 -15
-2
-20
-4
5,000
-6
- -8
1990 1994 1998 2002 2006 2010 2014 2018 2022 2026
(000s) Y-o-Y Change (%), RHA Current 2022q4 2023q4
U.S. Bureau of Labor Statistics, CBRE EA.
Oxford Economics, U.S. Bureau of Labor Statistics, CBRE EA.
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Major markets are not likely to return to pre-pandemic occupancy levels
Vacancy rate index, 2019 Q1 = 100 2023 vacancy rate less long-term market average (ppts)
350 9
8
300 7
San Francisco 6
250 5
Seattle 4
200 3
Denver
2
Boston
150 1
Chicago
0
100 Washington, D.C.
50
2019 2020 2021 2022 2023 2024 2025 2026
CBRE EA. CBRE EA.
- Nationally, the vacancy rate should peak at nearly 18% in 2022. High-cost, high-density cities with a sizable ‘start-up’ culture (e.g., San Francisco, New York,
Seattle) saw a significant uptick in the vacancy rate during 2020.
- Vacancies will remain above long-term average levels for some cities. This includes Houston, which never fully recovered from falling oil prices in 2014-15.
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2-year outlook for completions and absorption, major markets
Sum of U.S. markets office completions (000s) Forecast supply and absorption as a % of stock, 2021 -24
35,000 16
San Jose could face supply pressures with
14 5 MSF of new space expected to complete
30,000 12 through to 2024.
10
25,000
8
6
20,000
4
15,000 2
0
10,000
5,000
0
1990 1995 2000 2005 2010 2015 2020 2025 Completions Absorption
CBRE EA. CBRE EA.
- Although the supply pipeline is presently full, future supply cycles will likely be much less than in the past.
- Most markets are poised to see greater absorption than supply going forward. Major tech markets (e.g., Boston and San Jose) are key exceptions.
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The office investment focus is on high-quality properties
Share of offices sold that are fully occupied (%) Share of offices sold that are 40% - 80% occupied
75 16
70 14
65 12
60 10
55 8
50 6
45 4
2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021
Real Capital Analytics, CBRE EA. Real Capital Analytics, CBRE EA.
- As the concern surrounding virtual work is paramount investors have shown a clear preference for fully occupied office properties.
- In recent months there has been more appetite for value-add or opportunistic investments but the investment market for office vacancy
remains thin.
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How the virtual work trend could vary across office markets
Greatest prevalence of virtual work Moderate prevalence Less prevalence
1.0
0.8
0.6
0.4
0.2
0.0
Boston
New York
Tampa
Charlotte
Los Angeles
Houston
Hartford
Nashville
Minneapolis
Baltimore
Portland
San Diego
Riverside
Chicago
Orlando
Dallas
Philadelphia
Jacksonville
Kansas City
Louisville
Pittsburgh
New Orleans
Columbus
St. Louis
Detroit
San Antonio
Las Vegas
Richmond
Memphis
Virginia Beach
Milwaukee
Miami
Cleveland
Indianapolis
Salt Lake City
Cincinnati
Providence
Sacramento
Raleigh
Atlanta
San Francisco
Phoenix
Seattle
San Jose
Austin
Denver
Washington
Annual commuting costs
% of remote-work friendly occupations
Pre-COVID, % of workers that are remote
- ‘Digital’ markets are poised to see more virtual work. - Many cities, such as New York and Los Angeles, with - High-tech sectors are less prevalent in the Midwest,
sizable creative and transactional sectors, will need limiting the propensity for virtual work.
- Cities with high in-migration historically saw many
newcomers work virtually.
office/meeting space. - More manageable commute times encourage consistent
- Medium-sized Sunbelt cities with shorter commute office attendance.
NOTE: Many high-performing office markets have a legacy of virtual times offer easier access to the office.
work.
U.S. Census Bureau, University of Chicago, Clever, CBRE EA.
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The urban apartment recovery is well under way!
Change in vacancy rates from Q1 2020 (basis points)
- Most of the hardest-hit submarkets from
the pandemic were urban in nature or 800
700
were adjacent to urban cores. 600
500
- As social distancing rules have been 400
300
relaxed and vaccines deployed, people 200
have been moving back to urban 100
neighborhoods. This is evidenced by 0
vacancy rates generally falling back from -100
their 2020 peaks. -200
URBAN CLOSE-IN SUBURBAN 2021q3 less 2020q1 (bps)
CBRE EA.
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Value-oriented, ‘Class B’ apartments are holding up better than ‘Class A’
% of properties offering discounts by class
- Class A apartment fundamentals have 50
softened, due to new supply and move-
45
outs amongst more mobile, affluent
40
tenants during the pandemic.
35
- Class B landlords have greater leverage 30
as there are fewer deliveries of ‘value- 25
oriented’ rentals and Class B tenants are 20
less likely to move out for 15
homeownership.
10
5
0
2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Class A Class B
CBRE EA
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Apartment development generally follows population growth
Top 20 markets for apartment units underway as a share of inventory (%)
- Like other real estate sectors, the pace of 14
multifamily development in Austin
exceeds other marketplaces. 12
10
- A large share of this product will deliver
8
in more urbanized submarkets that have,
on balance, fallen out of favor during the 6
pandemic.
4
2
0
CBRE EA.
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There is opportunity in the Sunbelt
Apartment rent roll relative to yields
- Yields are relatively high in markets that 2024 rents relative to 2020q1 (%)
are poised to see the greatest expansion 33.0
in rents since early 2020. Tucson
Riverside
28.0
Albuquerque
Atlanta
- Traditionally stable and low-yielding Austin Phoenix
23.0 Tampa
markets will see a notable rent roll-up; Baltimore Detroit
however, not as much as more ‘interior’ Oakland
18.0 San Francisco Portland
cities. Further, some coastal, low-yielding Minneapolis
markets face the prospect of rent control Los Angeles
13.0 San Jose
legislation. New York
8.0
3.0
3.0 3.5 4.0 4.5 5.0 5.5 6.0
Cap rate (%)
CBRE EA.
43 CBRE ECONOMETRIC ADVISORS © 2021 CBRE, INC.Visualizing the Real Estate Landscape | EA Chartbook
Demographic tailwinds are fading
Total population aged 20-39 (millions)
- Apartments benefitted from a wave of 90
people moving into young adulthood
during the past decade; this trend is over.
85
- Although the traditional apartment
renting demographic is growing at a 80
slower pace, very low for-sale
affordability is poised to keep people 75
renting for longer.
70
65
1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020 2024
Tail-End of the Boomers Gen X Millennials Gen Z
CBRE EA.
44 CBRE ECONOMETRIC ADVISORS © 2021 CBRE, INC.Contacts Matt Mowell matt.mowell@cbre.com © Copyright 2021. All rights reserved. This report has been prepared in good faith, based on CBRE’s current anecdotal and evidence based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this presentation, they are subject to significant uncertainties and contingencies, many of which are beyond CBRE’s control. In addition, many of CBRE’s views are opinion and/or projections based on CBRE’s subjective analyses of current market circumstances. Other firms may have different opinions, projections and analyses, and actual market conditions in the future may cause CBRE’s current views to later be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change. Nothing in this report should be construed as an indicator of the future performance of CBRE’s securities or of the performance of any other company’s securities. You should not purchase or sell securities—of CBRE or any other company—based on the views herein. CBRE disclaims all liability for securities purchased or sold based on information herein, and by viewing this report, you waive all claims against CBRE as well as against CBRE’s affiliates, officers, directors, employees, agents, advisers and representatives arising out of the accuracy, completeness, adequacy or your use of the information herein.
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