U.S. Real Estate Strategic Outlook June 2024

This document is a research report that outlines the U.S. real estate market's strategic outlook for mid-year 2024. It discusses the recent trends in real estate prices, indicating that they have bottomed out and are expected to return to growth in the latter half of 2024. The report suggests that interest rates have peaked, which may alleviate some pressure on real estate valuations. It highlights a new market cycle characterized by elevated cap rates and strong fundamentals, particularly in the industrial, residential, and retail sectors. The report also notes the impact of recent economic conditions on vacancies and net operating income growth, while emphasizing the potential for rental growth driven by structural factors such as population growth and e-commerce. Additionally, it discusses the significant drop in construction starts, which may lead to a supply void and strengthen market fundamentals in the coming years.