GLED019 - Mid-Week Global Analysis — Market Dynamics & Strategic Positioning

Tuesday morning mid-week global analysis for institutional real estate capital positioning following sustained post-FOMC momentum. Mid-Week Market Positioning: Federal Reserve's 25bp cut to 4.00%-4.25% maintaining sustained momentum. US 10-year Treasury at 4.14%-4.15% with commercial mortgage rates around 5.78%-6.34%. 30-year mortgage rates around 6.2%-6.4% following Fed cuts. Commercial real estate investment projected to increase by 10% in 2025. Sovereign Wealth Fund Mid-Week Activity: $13-14 trillion assets under management with 54% of deployments from Middle Eastern funds. Infrastructure (7.7%) now slightly overtaking real estate (7.6%) as preferred alternative. Norway's sovereign wealth fund acquired 95% stake in Manhattan office building for $543 million. Strategic shift towards hard assets with 61% of direct investments in infrastructure and real estate. Cross-Border Investment Mid-Week Trends: Foreign investment in US commercial real estate at lowest level since 2011. Middle Eastern and Singaporean SWFs remaining selectively active despite broader pullback. Weaker US dollar down over 10% in H1 2025 affecting cross-border flows. Asia Pacific showing 5% increase in investment activity in H1 2025. Commercial Real Estate Mid-Week Analysis: Office sector showing stronger leasing activity for prime assets. Industrial sector anticipating moderate growth in demand. Multifamily and single-family rentals performing well driven by rent-to-ownership ratio. Data centers poised to benefit significantly from AI investments. Key Mid-Week Economic Indicators: US 10-year yield at 4.147%-4.153% with Germany at 2.752%, UK at 4.717%. India's GDP growth forecast remaining strong at 6.6% attracting cross-border investment. Office vacancy rates at record high of 20.4% creating challenges. $2.2 trillion in CRE loans coming due creating refinancing pressure. Regional Mid-Week Dynamics: US remaining largest market for cross-border real estate investment. Singapore, Japan, Hong Kong among top global sources of cross-border capital. Middle East and Africa seeing rapid urbanization driving growth in secondary cities. Living sector emerging as top target for cross-border investment. Mid-Week Global Institutional Advantage: Strategic positioning for market dynamics and deployment opportunities while leveraging sustained post-FOMC momentum and sovereign wealth fund activity in global commercial real estate markets. Contact: [e-mail]