Neat!
GDP Growth and Momentum in the Top 50 Metros: Key Insights 1. Austin’s Productivity is Accelerating: Austin is a clear outlier, with exceptional 5- and 10-year GDP compound annual growth rates (CAGR). Notably, Austin’s 5-year CAGR exceeds its 10-year CAGR, signaling that economic productivity is not only robust but accelerating—another reason Austin remains a hot market. 2. Tampa’s Rapid Growth Acceleration: Tampa leads the pack in GDP growth acceleration, showing the widest gap between 5-year and 10-year CAGRs. This trend could underpin a bullish outlook for Tampa’s economic trajectory. 3. Deceleration in Tech-Heavy Markets: While tech-centric markets have enjoyed above-average 10-year GDP growth, 5-year CAGRs for San Francisco and San Jose suggest a deceleration, with growth converging closer to the national mean. This could indicate a shift in momentum for these markets. Implications for CRE Values: Historically, cap rate compression has closely tracked GDP growth, translating into meaningful impacts on commercial real estate values. As GDP growth patterns evolve, understanding these trends will be critical for identifying opportunities and risks in the CRE market.
