Market Update

TOWER…IS IT SAFE TO LAND?

As backdrop to the Fed’s most recent .25% increase in the fed funds rate, GDP sustained 2.4% growth in the last quarter completing the 4th consecutive positive quarter in a row. Durable goods rose 4.7% and inflation cooled slightly. Unemployment remains at a 20 year low of 3.6%. Talk is now of avoiding a hard landing and waning recession fears as consumer confidence reports improve.

Is it time to declare a smooth landing? Like in all economic forecasts, it depends.

According to the Bureau of Business and Economic Research, they are no longer forecasting a recession in Montana or the U.S. in 2024 and 2025. But how does this correlate to certain commercial property types?

Let’s take a look at first quarter numbers for the main commercial market sectors. According to Dr. Glen R. Mueller at Denver University, commercial real estate market sectors stretch from the expansion to flashing recession signs.

*Source B.B.E.R. for migration trends.