International Economic Growth

* Slowing International Growth Holds Implications for U.S.

• Softening international economic momentum, particularly Germany & China to weigh on U.S growth

• International trade and foreign sales by U.S. multinational corporations face biggest impact

*Fed to Reevaluate Strategies Amid Shifting Trends

• Downward pressure on U.S. Treasury yields as other countries cut rates on their own 10-year bonds

• U.S. Treasuries attractive to foreign investors because of higher yields and safety – pushes U.S. rates down

• Fed may become more accommodative and less likely to raise rates as they become more cautious

*Impact for CRE Minimal – Outlook Positive

• Reduced interest rate risk, lower interest rates to benefit investors in the short-term

• Fundamentals remain strong across all sectors – even slow economic growth sufficient to drive gains