Regional variation in commercial real estate markets: The outlook for commercial real estate capital markets varies significantly across regions, reflecting differences in economic conditions, regulatory environments and market maturity. In North America, the focus has been on navigating the challenges of high interest rates and adapting to changes in demand for office and retail space. The industrial and multifamily sectors remain strong, supported by solid fundamentals and investor confidence.Cross-border investment in real estate continues to play a significant role in global markets, with the United States, Canada, Japan, Singapore and others accounting for a substantial share of cross-border capital flows. While cross-border investors’ share of activity varies widely across regions, their impact is notable in major markets, especially in Europe and Asia-Pacific. In the US, cross-border investment represents a smaller percentage of overall real estate activity, but the dollar volume is considerable. Regional differences reflect diverse market dynamics and regulatory environments, with cross-border investors gravitating towards liquid, transparent markets with favourable governance and investment conditions.US multifamily and commercial real estate quarterly loan default FIGURE 6 1%2%3%4%5% 0 2007Q234 Q234 Q234 Q234 Q234 Q234 Q234 Q234 Q234 Q234 Q234 Q234 Q234 Q234 Q234 Q234 Q234 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Multifamily CommercialQ2 Source: Federal Deposit Insurance Corporation (FDIC). Reimagining Real Estate: A Framework for the Future 16

Reimagining Real Estate 2024