MACRO INTELLIGENCE MEMO

TO: Real Estate Buyers, Renters & Investors

FROM: Real Estate Consumer Strategy Division

DATE: June 2030

RE: Making Smart Property Decisions in a Reallocating Real Estate Market

EXECUTIVE SUMMARY

By June 2030, the real estate market has undergone significant reallocation. Office is worthless. Data center is valuable. Residential varies by location.

For real estate buyers and investors, understanding these dynamics is essential for making intelligent decisions.

FOR HOMEBUYERS

Urban centers: - Prices rising but growth slowing (remote work reduces urban demand) - Strategy: Only buy if you genuinely want to live in city, not for appreciation - Expect moderate appreciation (2-3% annually) at best

Suburbs: - Prices appreciating (people moving out of cities) - Strategy: Suburban properties appreciate as people relocate - Supply of single-family homes is increasing (more availability) - Expect better appreciation (3-5% annually) than urban

Secondary cities: - Prices appreciating fastest (people relocating out of expensive metros) - Strategy: Opportunity for appreciation if you believe in city growth - More uncertain (depends on local job market)

Strategy: 1. Buy where you plan to stay (not for speculation) 2. Understand local dynamics (is migration trend continuing?) 3. Accept that appreciation will be moderate (not 10% annually as 2020-2023)

FOR INVESTORS

Multifamily residential: - Growing demand (rents rising in suburban/secondary markets) - Good opportunity if focused on growth markets - Moderate returns (5-7% cap rates)

Data center real estate: - Highest growth, lowest risk - But difficult to access (requires capital and institutional knowledge) - Returns are strong (5-8% cap rates with growth upside)

Office: - Avoid (declining, negative outlook) - Exception: Conversion plays (converting office to residential) - Only pursue if you have specific conversion strategy

Retail: - Avoid (structural decline) - Exception: High-traffic locations with strong brands - Only pursue if you understand specific tenant stability

Strategy: 1. Focus on multifamily in growth markets (safest play) 2. Avoid office entirely (structural decline) 3. Data center only if you have institutional access and capital 4. Understand local market dynamics before investing

FOR RENTERS

Urban apartments: - Rents moderating (more supply due to office conversions) - Opportunity to negotiate better deals - Strategy: Rents will not appreciate as rapidly as 2020-2023

Suburban rentals: - Rents rising (increased demand) - Less supply (suburban multifamily not being built as fast as demand) - Strategy: Expect higher rents going forward; buy if you want to stay

Strategy: 1. Urban renters have leverage (more supply, negotiating power) 2. Suburban renters should consider buying (rents likely to rise)

FOR REAL ESTATE AGENTS

By June 2030, real estate agent commissions are under pressure (AI agents, lower transaction volume). Career viability depends on: 1. Specialization (high-value properties, investor properties) 2. Geographic expertise (become go-to expert in specific market) 3. Relationship strength (serving loyal client base)

General residential real estate agency is declining as viable career.

CLOSING THOUGHTS

Real estate by June 2030 is reallocating from office to data center to residential to secondary cities.

Make your real estate decisions based on: 1. Local market dynamics 2. Long-term residential intent (not speculation) 3. Understanding of structural trends (office decline, remote work, migration patterns)

The days of guaranteed real estate appreciation are over. Make intentional decisions based on fundamentals.