In August, the U.S. economy added 142,000 jobs, which was slightly below the expected 161,000 jobs. This suggests a slowdown in the labor market but could also lead to the Federal Reserve lowering interest rates later in the month. The unemployment rate dropped to 4.2% as the labor force expanded by 120,000, maintaining a 62.7% labor force participation rate.

Investment sales are showing signs of a comeback. Sales across different types of properties increased in the second quarter for the first time in two years. Multifamily, industrial, and hospitality properties all experienced a rise in sales volumes. Major investors are back in the market, bidding on properties and acquiring portfolios, citing that this is an ideal moment to acquire commercial real estate. Anyone seeking a deal will need to act quickly.

Commercial real estate prices rose by 1.6% in August, marking a 3.3% increase for the year. It is possible that the anticipated buyer bargains may not materialize, and opportunistic and distressed funds will have to make tough decisions about returning money to investors or adjusting their investment strategies.

Source: https://www.cnbc.com/2024/09/06/jobs-report-august-2024.html

Source: https://www.morningstar.com/sectors/real-estate

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