GLED015 - Post-FOMC Global Positioning - Central Bank Divergence & Cross-Border Capital Acceleration

GLOBAL REAL ESTATE DAILY

Wednesday morning post-FOMC global positioning analysis for institutional real estate capital following Federal Reserve decision execution. Global Central Bank Divergence Execution: Federal Reserve executed anticipated 25bp cut to 4.00%-4.25% range while ECB maintains rates creating 450bp policy spread. Currency-driven acquisition windows now fully active for international capital with cross-border investment surging 57% in Q1 2025 to highest level since 2022. Treasury and Mortgage Market Response: US 10-year Treasury eased to 4.03% post-decision with commercial mortgage rates positioned for compression from current 6.35% 30-year fixed. Market pricing additional cuts with global implications for institutional borrowing costs. CMBS Market Relief Beginning: $150.9B maturity wall refinancing opportunities now active. SASB deals positioned as strong performers driving issuance resurgence. Sovereign wealth funds well-positioned for CMBS opportunities in divergent rate environment. Global Capital Flow Acceleration: $7T "wall of cash" in money market funds positioned for deployment into risk assets including real estate. UK emerged as top global destination for cross-border capital. Asia-Pacific markets with Singapore, Japan, Hong Kong among top 10 global capital sources. Regional Performance Intelligence: Asia-Pacific 5% increase H1 2025 with acceleration expected post-Fed decision. Geopolitical tensions reshaping flows requiring new cross-border strategies. Institutional investors re-engaging with increased market share. Sector Post-Decision Positioning: Data centers and industrial expected immediate beneficiaries from lower financing costs. Multifamily positioned for continued strong performance. Office sector potential stabilization with cheaper repositioning capital. Post-FOMC Global Institutional Advantage: Central bank divergence execution creating active arbitrage opportunities for pension funds and sovereign wealth funds positioning for cross-border deployment acceleration in lower rate environment. Contact: [email protected]