GLED016 - Post-FOMC Follow-Through — Global Capital Deployment & Currency-Driven Opportunities

GLOBAL REAL ESTATE DAILY

Thursday morning post-FOMC follow-through analysis for institutional real estate capital positioning following Federal Reserve decision execution. Post-FOMC Market Follow-Through: Federal Reserve's 25bp cut to 4.00%-4.25% creating sustained momentum. US 10-year Treasury rose to 4.13% with 30-year at 4.74% showing market adjustment while commercial mortgage rates positioned for continued compression from 5.01% baseline. Investment volume projected 15% increase for year up from earlier 10% estimate with dealmaking acceleration expected. Global Capital Deployment Acceleration: Cross-border investment building on 57% Q1 surge momentum with global capital flows projected to increase as interest rates decline. Industrial and multifamily expected immediate beneficiaries with data centers, student housing, senior housing continuing capital flow. Office showing stabilization signals despite ongoing challenges. Currency-Driven Opportunities: USD weakening creating enhanced acquisition opportunities for foreign capital. Europe emerging as preferred destination due to favorable exchange rates. Emerging markets more appealing with softer US yields. Asia-Pacific investment activity up 5% H1 2025 with acceleration expected. Sovereign Wealth Fund Follow-Through: $13-14 trillion assets under management up from $11.6 trillion in 2022. Real estate allocations at 7.3% vs infrastructure at 8.1% creating rebalancing opportunities. Middle Eastern funds controlling 54% deployment with increased activity expected. Strategic repositioning toward private credit and real estate debt. Regional Follow-Through Dynamics: Australia and Japan prominent global capital destinations. Singapore, Japan, Hong Kong key sources outbound cross-border capital. Cross-border capital retreating from US due to tariff concerns. Industrial & logistics and multifamily attracting most cross-regional investment. Post-FOMC Global Institutional Advantage: Currency-driven opportunities accelerating with central bank divergence creating sustained arbitrage windows for pension funds and sovereign wealth funds positioning for global deployment in lower rate environment. Contact: [email protected]