We also note key movements in the below sectors:

• Manufacturing, which includes Semiconductor and the EV Supply chain, remains sector with added impetus from the benefits of the CHIPS act and onshoring manufacturing to meet demands following the disruptive effects of the pandemic and subsequent faltering in supply chains across the globe.
• Residential construction has seen a slowdown in starts, largely led by the cost of finance. Demand is strong and the recent fluctuations in cost of materials and labor has heavily impacted the sector. Growth in some markets is driven primarily by ground-up, multifamily projects.
• Hospitality is being led by high-end, luxury developments, which saw less of an impact than midscale and others.  There also seems to be a slight uptick in brand refresh and PIPs following deferred renovations throughout the pandemic and dropping ADRs and occupation that appears to be resolving.
• Life Science, Office and Retail are all varied in submarkets and process.
  • Retail has seen a return to in-store sales following the pandemic: 82% of sales are now coming from physical stores, and online sales have fallen from the height of the pandemic. Neighborhood retail and experiential retail is on the rise as the oversupply of malls by a factor of 4 in the US are repositioned.
  • Office is seeing one of the toughest challenges to the sector with cost of finance, reduced occupancy and debt maturation that has seen a drop in property valuation leading to repositioning and potential sector conversions.
  • The Life-sciences sector has been impacted both by renewed interest in the pharmaceutical industry and the increasing cost of borrowing money.
• Healthcare and education are remaining stable with market variations being impacted from the increases in cost of labor and materials.