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Labor data diverges, data centers dominate Beige Book, CRE implications from bond rout
Description
Cole Perry and Omar Eltorai break down a data-heavy week for the US economy and what it means for commercial real estate. They cover the latest construction, labor, and PMI readings, then turn to the Fed's August 2026 Beige Book for qualitative color on office bifurcation, multifamily concessions, and data centers as the dominant construction story across Districts. The back half focuses on a sharp move higher in global bond yields and what's driving it, followed by a historical look at how CRE has actually performed through four past episodes of rising real yields over the last three decades.
Key moments:
01:30 Construction, labor, and PMIs
12:05 Fed Beige Book
18:10 Global bond market moves
24:35 What higher rates mean for CRE
29:10 How CRE has performed through past rate cycles
34:40 Inflation-adjusted transaction volume
Resources:
Census Bureau - Value of Construction Put in Place report