Commercial real estate investment activity has not changed much since last month's interest rate reduction from the Federal Reserve (nor has it had much time to adjust), but sales volumes will almost certainly improve in 2025, given the strong investment prospects for CRE assets at the start of a rate cutting cycle. For multifamily apartments, unambiguous signs of strong demand point to improved performance in the medium-to-long-term, but in the shorter term, elevated levels of apartment supply and typical seasonal demand trends could mean that rent growth continues to trend lower until Spring of next year.

"As is often the case, we are navigating by the stars under cloudy skies," from "Inflation: Progress and the Path Ahead," Jerome Powell, Aug. 2023

Bureau of Labor Statistics: “Consumer Price Index, September 2024” - https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category.htm#

CBRE: “What Could Be in Store for Commercial Real Estate” - https://www.cbre.com/insights/briefs/cotw-what-could-be-in-store-for-commercial-real-estate

RealPage: “Strong Apartment Demand Persists in 3rd Quarter as Supply Hits 50-Year High” - https://www.realpage.com/analytics/3q-2024-data-update/

Apartment List: “National Rent Report, September 2024” - https://www.apartmentlist.com/research/national-rent-data

Yardi Matrix: National Multifamily Report, September 2024 - https://www.yardimatrix.com/publications/download/file/6228-MatrixMultifamilyNationalReport-September2024

Fannie Mae: “September 2024 Home Purchase Sentiment Index” - https://www.fanniemae.com/media/53371/display