COMMERCIAL REAL ESTATE'S ECONOMIC ADVISORS

Geopolitical risks are primarily tied to U.S. commercial real estate through market volatility, energy prices, and the rising cost of U.S. debt.

June 2025 was marked by an acute rise in geopolitical tensions and Congress's efforts to advance President Trump's tax and spending bill. Nonetheless, critical signals from the US housing market and renewed concerns around risks to commercial property debt drew heightened scrutiny from CRE investors.

“Extend and pretend” increases credit misallocation and may be slowing the Office market's transition.

US CRE markets are primarily driven by domestic conditions but remain vulnerable to global instability and the uncertainty it comes with.