How Does the Labor Shortage Impact Commercial Real Estate Investors?

• The U.S. faces a 4.4M person labor shortage – Largest on record

• Early retirement, less international migration, and caring for kids/family are the main factors causing people to exit the labor force

• Hotel and Seniors Housing face the most direct headwinds

• Retail and Office face indirect impact as some companies delay expansion or accommodate remote work due to a lack of available labor

• The least impacted are Industrial and Multifamily

• Even if shortages linger over the mid-term, compelling CRE investment opportunities still exist

• Investors should focus on market dynamics for 5+ years down the road