Midyear Employment Update and the Fed

U.S. Adds 1 Million Jobs in the First Half of 2019

•Employment growth volatile month to month. On pace with 2016 and 2017 levels

•Record low unemployment and tight labor market weighing on job growth

•Current economic expansion approaching longest on record –continuous job gains for 105 months

Healthy Employment Market Supports All CRE Sectors

•Underlying demand drivers for commercial real estate remain strong – Suggests further growth

•Preliminary Apartment data outperforming - Recorded lowest 2Q vacancy rate in 19 years

Short- to Mid-Term Economic Outlook Robust

•Steady job growth, positive demographics support all real estate space demand

•Trade War and global slowdown pose headwinds, but watch for a Fed rate reduction that could extend the cycle