As it stands, the news flow is generating record-high policy uncertainty, amplifying risks to the economic outlook. Even without decisions being finalized, uncertainty hurts sentiment, and the longer that continues, the more it weighs on activity.
But with real estate fundamentals holding up – ongoing employment growth, low unemployment rates and inflation and interest rates trending down, and all largely in a world with limited supply – how much at risk is the real estate recovery?
That question lies at the heart of PGIM Real Estate’s latest investment research insights, which are trying to better understand how resilient the real estate outlook is. To address these complexities, the team has called in extra expertise – broadening their insights to now cover global credit and Mexico.
UNITED STATES
What happens to real estate values now that interest rates are higher and how does productivity impact real estate performance?
EUROPE
Have higher government bond yields changed the real estate outlook and what does an analysis of affordability mean for office rental growth forecasts?
ASIA PACIFIC
How does infill development affect the link between economics and rental growth and is this being missed by forecasters?
MEXICO
What does tariff uncertainty mean for industrial investment and which markets benefit most from higher productivity?
References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. The securities referenced may or may not be held in the portfolio at the time of publication and, if such securities are held, no representation is being made that such securities will continue to be held.
The views expressed herein are those of PGIM investment professionals at the time the comments were made, may not be reflective of their current opinions, and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice or an offer to sell or a solicitation to buy any securities mentioned herein. Neither PFI, its affiliates, nor their licensed sales professionals render tax or legal advice. Clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation. Certain information in this commentary has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice. The manager has no obligation to update any or all such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy.
Any projections or forecasts presented herein are subject to change without notice. Actual data will vary and may not be reflected here. Projections and forecasts are subject to high levels of uncertainty. Accordingly, any projections or forecasts should be viewed as merely representative of a broad range of possible outcomes. Projections or forecasts are estimated based on assumptions, subject to significant revision, and may change materially as economic and market conditions change.
4393876
