Despite Negative GDP Growth, CRE Remains Well-Positioned as Long-Term Investment

• GDP Contracts for Second Quarter in a Row
  - GDP growth negative in 2Q; Not necessarily a recession
  - Labor market, consumption and manufacturing performed well in 1H 2022
  - Each markets will experience varying headwinds

• Fed Implements Another Aggressive Rate Hike
  - Fed raised overnight rates 75 bps on July 27
  - Aggressive action a response to high inflation
  - Puts overnight rate in 2.25%-2.50% range, on par with July 2019

• Considerations for CRE Investors
  - Fundamentals remain strong for most properties
  - Core economic drivers in place to support property space demand
  - Investors recalibrating strategies to adapt to more fluid investment climate