CBRE Group, Inc. is the world’s largest commercial real estate services and investment firm, with 2018 revenues of $21.3 billion and more than 90,000 employees (excluding affiliate offices). CBRE has been included in the Fortune 500 since 2008, ranking #146 in 2019. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.


CBRE Global Investors, combined with CBRE Clarion Securities and CBRE Caledon, is one of the world’s leading real asset investment managers with $107 billion in assets under management.

Built up over more than 40 years, our unparalleled platform is focused on real assets, giving our institutional clients access to real estate and infrastructure in the Americas, Europe and Asia Pacific. Our clients benefit from a complete range of investment solutions including equity and debt, direct and indirect, and listed and unlisted strategies.

Trammell Crow Company, founded in Dallas, Texas in 1948, is one of the nation’s oldest and most prolific developers of, and investors in, commercial real estate.The CBRE Global Investors and Trammell Crow Company platforms make up the Real Estate Investments division of CBRE Group.

The Real Estate Investments division is led by
Danny Queenan, Global CEO, Real Estate Investments.


Regularly released content on the state of the real estate and infrastructure industry are produced by our subject matter experts and shared on their blogs. A selection of them can be found below.

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The current economic expansion is now officially the longest in U.S. history and the national unemployment rate remains at a fifty-year low. But despite the positive milestones, there are an increasing number of indicators that suggest an economic slowdown is looming. The interest rate yield curve remained inverted for the third consecutive month, an event which has often preceded prior recessions. Europe and Asia continue to experience slowing economic growth, and the U.S. and China are still engaged in an intense trade battle. However, at the G20 Summit in Japan, President Trump met with his Chinese counterpart, where it was agreed that the U.S. would not place any additional tariffs on Chinese goods for the time being and the two countries will continue negotiating a trade deal. President Trump has also voiced his desire for the Fed to cut interest rates. But despite the pressure, the Fed announced in June that rates would remain at their current level, although it indicated that they are prepared to cut if needed. Despite the recent slip, consumer confidence remains elevated and a cooling housing market is shifting momentum towards buyers. Although the U.S. economy is expected to continue expanding in the near-term, economic uncertainties have curtailed recent momentum.


May’s job report, where payrolls increased by 75,000, was a disappointment after much stronger gains in March and April which were revised lower. The tepid reading was significantly off the average pace set in the last twelve months and jobs added year-to-date are more than 30% off the pace set during the same time last year. Despite the deceleration the U.S. economy remains in growth mode as it chugs along in this extended economic cycle. Wages continue to see healthy increases, but low-skilled workers continue to see limited bargaining power. The unemployment and labor participation rate remained steady at 3.6% and 62.8% respectively. The dissipating 2018 federal tax cuts, deceleration in retail sales, combined with rising headwinds in the form of weaker global economic growth and elevated geopolitical risks generate expectations for more modest job creation going forward.

JULY 2019



S&P 500


Fed Funds Rate


13 bps

10-yr. T-Note




*WTI Crude Oil Spot Price. Data points through end of June 2019. Change represents month-over-month change.

Jeremiah Lee
Rene Moreira
Joey Valenzuela

GDP increased by 3.1% in 1Q19, a solid uptick after the modest reading in 4Q18 of 2.2%. The acceleration was driven primarily by the rebound in trade early in 2019 as well as increased state and local government spending. Imports saw a healthy positive reading after witnessing declines in the second half of 2018 and exports’ contribution increased 30 bps from the previous quarter. State and local government spending was the other largest contributor after seeing its strongest contribution reading since 1Q2016. Many metros across the U.S. have increased infrastructure spending over the last few months which has boosted local economies.

Source: U.S. Bureau of Economic Analysis

As threats of a trade war mount and key indicators signal that the end of the growth cycle may be near, consumer confidence slipped in June 2019, falling to 121.5 – its lowest level since September 2017. Mixed signals from key economic indicators along with rising trade tensions with China and Mexico have contributed to growing uncertainty. While still elevated relative to its long-term average, the index’s recent volatility points to falling optimism among U.S. consumers.

Source: The Conference Board

Despite rising headwinds, household spending remained buoyant, fueling retail sales growth through May 2019. A reflection of the strength in equity markets and tight job market, retail spending increased in May 2019, rising by 2.7% y-o-y, assuaging concerns of a sharp drop-off in economic growth in the second quarter. Although positive, retail sales growth has decelerated in comparison to the same time last year.

Source: U.S. Census Bureau

The peak home-selling season in the U.S. is in full swing and attractive lending rates await potential buyers. 30-year fixed mortgage rates have dropped to their lowest levels in two and a half years, and growth in home sales prices has continued to slow. The Case-Shiller National Home Price Index revealed a 3.5% annual increase in April, down from a 3.7% y-o-y increase recorded in March. The annualized rate of single-family housing starts remains in the same range that has been witnessed over the last three years, and the inventory in months-of-supply increased from 5.9 to 6.4 months between April and May. With declining mortgage rates and decelerating home sales prices, the housing market appears to be shifting in favor of homebuyers.

Source: U.S. Census Bureau
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This information is for our clients and investors only. Please note that the content of this report is for informational purposes only and should not be viewed as investment advice or an offer or solicitation. Any opinions are solely those of the Strategy & Research Team of CBRE Global Investors and are subject to change without notice, and may not be consistent with market trends or future events. This research is based on current public information that we consider reliable, but we do not represent it as accurate, updated or complete, and it should not be relied on as such.

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