Economic Center Blog
Welcome to the First American Economic Center Blog, a top source for the latest housing market research and analysis driven by Chief Economist Mark Fleming.

CRE X-Factor – The End of the Beginning for the CRE Adjustment?

By Xander Snyder on September 15, 2023
With interest rates high, transaction volumes low, and property prices generally on the decline, it’s safe to say that the commercial real estate (CRE) market is undergoing an adjustment period. The market adjustment has triggered a process referred to as “price discovery,” in which many buyers are sitting on the sidelines waiting for lower entry ... Read More›

Commercial Real Estate CRE X-Factor

CRE X-Factor – Why Operating Costs for Commercial Properties have Soared

By Xander Snyder on August 10, 2023
As rent growth has softened across all asset classes, property owners and operators have increased their focus on limiting expense growth. However, this has proven difficult for some line items, as both property insurance, and repairs and maintenance (R&M) expenses have increased significantly over the last three years. In this edition of the ... Read More›

Commercial Real Estate CRE X-Factor

CRE X-Factor – Assessing the State of the CRE Reset

By Xander Snyder on July 12, 2023
The commercial real estate (CRE) market is in a reset. Deal activity is down, and property prices are declining. We recently examined what clues history can provide about the potential length and depth of CRE price declines. Today, let’s examine what current CRE fundamentals can tell us about where we are in the process of resetting. Read More›

Commercial Real Estate CRE X-Factor

CRE X-Factor: For Commercial Real Estate, Banks Aren’t the Only Lender in Town

By Xander Snyder on May 9, 2023
When most people think of a loan, they think of a bank. Banks take deposits from customers in return for interest payments or other services. The bank then invests those deposits in loans, such as commercial real estate (CRE) loans, and securities that pay a higher interest rate than the bank is paying on the deposits. However, a bank is not the ... Read More›

Commercial Real Estate CRE X-Factor

CRE X-Factor: Analyzing the Commercial Real Estate Market Slowdown

By Xander Snyder on February 15, 2023
Several indicators now point firmly to a broad cooling in commercial real estate (CRE) markets. The extent of the cooling, however, varies meaningfully by asset class and geography. Read More›

Commercial Real Estate CRE X-Factor

CRE X-Factor: Where is Commercial Real Estate Deal Activity Heading in 2023?

By Xander Snyder on December 16, 2022
Several commercial real estate (CRE) fundamentals continued to soften in October. It was the second consecutive month where prices for multifamily, retail, and central business district (CBD) office sectors all declined on a month-over-month basis, though prices remain higher for all asset classes compared to October 2021. Read More›

Commercial Real Estate Interest Rates CRE X-Factor