×

OUR COMPANY AFFILIATES

CBRE GROUP

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.

INVESTMENT 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.

BLOGS

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.

Viewed 268 times

U.S. EARLY INDICATORS

Q3 2019
PROPERTY PERFORMANCE PERSISTS DESPITE RISING HEADWINDS
CAP RATE SPREAD WIDENS

Aided by a reversal in Fed monetary policy, BBB corporate bond yields have declined dramatically through the first half of 2019 to multi-year lows. Since cap rates remained relatively unchanged from the previous quarter, the cap-rate-to-corporate-bond-yield ratio spiked, raising the relative value of commercial real estate to fixed income. However, given the volatility of interest rates in recent quarters, the ratio could continue to swing widely.

Sources: Oxford Economics, NCREIF, Green Street, Real Capital Analytics
REIT-SILIENCY

Listed real estate returns rebounded through the first half of 2019, erasing the effects of a tumultuous end to 2018. Overcoming financial market volatility, healthy market fundamentals across most property sectors supports REIT investment. The REIT total return for the first half of the year was 17.0%, while the return for private real estate was 3.3%, which maintained a positive but decelerating trend fueled increasingly by income growth.

Sources: NCREIF; NAREIT. Both indices rebased to 100 on June 30, 2006
YIELD CURVE INVERSION

Sustaining two-months of consistent yield curve inversion, the 3-month/10-year Treasury spread continued to fall through early August, sending its strongest alarm signal since prior to the GFC. The combination of rising U.S.-China trade tensions, a slowing global economy, and the possibility of a “no-deal” Brexit, have overshadowed signs of positive economic growth domestically. However, the picture is clouded by central banks’ unprecedented manipulation of rates through quantitative easing.

Source: Federal Reserve
VOLATILITY CLOUDS OUTLOOK

The leading economic indicators index has seemingly plateaued, declining 0.3% from the previous month, following five consecutive months of gains. Driven by weakness in manufacturing activity and residential permits, as well as the flat yield curve, the LEIs recent performance points to more subdued economic growth through the remainder of the year.

Source: The Conference Board Index is comprised of ten economic indicators, including average production work week, initial unemployment claims, manufacturers new orders, vendor performance, supplier deliveries, building permits, stock prices, money supply, consumer expectations, and interest rate spreads.
UNEMPLOYMENT RATE HOLDS FIRM

As the U.S. economy added jobs at an above-average rate of 173,000 jobs per month through July 2019, the unemployment rate remained near its cyclical low of 3.6% through the first half of 2019. Since the current unemployment rate is still below recent trend, the economic outlook remains sanguine.

Source: BEA
PRINCIPAL CONTRIBUTOR:
 
Jeremiah Lee
Related Content

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.

Copyright © 2019, CBRE Global Investors, LLC. All rights reserved.