Rising interest rates drew trillions of dollars into money-market funds and other cash-like investments in the past two years, with more than $8.8 trillion parked in money funds and CDs as of the third quarter of 2023.
CRE Debt
In 2023, $541 billion in debt backed by office buildings, hotels, apartments and other types of commercial real estate came due, the highest amount ever for a single year. Commercial-debt maturities are expected to continue rising, with more than $2.2 trillion coming due between now and the end of 2027.
Shopping Centers
Foot traffic to U.S. indoor malls was down 4% on average in 2023 from the prior year, and about 12% lower than 2019 levels. Alternatively, increasing demand for open-air space has driven up shopping-center rents to nearly $24 a square foot, the highest level since tracking the metric in 2007.
ETF Net Flows
In 2023, ETFs gathered nearly $600 billion in net flows. While that’s less than some previous years, including 2021’s nearly $1 trillion record haul, it still shows the massive, sustained momentum behind ETFs.
BLK Infrastructure
BlackRock, the world’s biggest asset manager, announced it is buying Global Infrastructure Partners for about $12 billion in cash and stock. The acquisition is part of the firm’s increased focus on infrastructure.
Rent Inflation
Rent inflation for studios to two-bedrooms in the top 50 metros declined for seven consecutive months, with the national median asking price falling to $1,717.
PE Insurance Cos
Private-equity investment has dramatically changed the life insurance and annuity business over the past decade. By 2022, buyout firms owned 137 U.S. insurance companies with $534 billion in assets, about 6.5% of the entire U.S. market, up from 90 insurers and $314 billion in 2018, around 4.8% of the market.
Retail Sales
U.S. retail sales rose 3.1% from Nov. 1 through Dec. 24, reflecting a year marked by rising prices. After a busy Thanksgiving and Black Friday weekend, many consumers waited for the last minute to shop, with Saturday, Dec. 23, the biggest sales day of the year—topping Black Friday.
Office Vacancy
A staggering 19.6% of office space in major U.S. cities wasn’t leased as of the fourth quarter, up from 18.8% a year earlier. That is slightly above the previous records of 19.3% set in 1986 and 1991 and the highest number since at least 1979.
Mortgage Spread
The 30-year mortgage rate has fallen by more than a percentage point recently to 6.62%. The shrinking spread between that and the 10-year Treasury yield amounts to roughly one-sixth of the decline.