1  Investors’ interest is focused again on the liquidity-rich U.S. which already has a recovered swap rate

• The U.S.’ M2 growth rate increased by 22.7% on average from May to July, making the US market have the fastest growing liquidity in the world. Despite the concerns about a slowdown in the real economy, the US stock market recorded a new high.

• Until September 2020, the decline in dry powder was insignificant, for example the dry powder for Core + increased, and the economy is expected to recover faster than the financial crisis due to a prompt response on the crisis.

• The USD/KRW annualized swap spread has been reduced to -0.1% due to the cut in the US base rate, and the gap with the Eurocurrency has also decreased. It is expected that cross-border investors will be more interested in investing in the US market as a favorable swap-spread will work not only in the Korean won but also in other currencies.

2  It is necessary to pay attention to the resilient cities such as Boston, San Francisco, and Charlotte with Office Investment

• It is necessary to pay attention to the office market with great resilience from the crisis.

• Regions with rapid recovery in real estate indicators (transaction volume, transaction price per unit and cap rate) and macro indicators such as GDP Growth and unemployment rate are resistant to crisis.

• Attention is needed for the office sector selective areas such as NYC Boroughs, Boston, San Francisco, and Charlotte.