Our goal at Fractal is simple: exploiting the positive delta between real estate's intrinsic and extrinsic value. Since Fractal's inception, we have spent considerable time discussing our macro environment outlook and its positive externalities on retail asset valuations. With core indicators continuing to converge, the resulting environment represents an optimal alignment for the most rewarding part of our cycle-recovery. This period historically has experienced double the returns of all other periods affording a high level of confidence in capturing not only organic asset appreciation and, through our competitive positioning and thematic approach significantly enhancing upon those returns.
The unsettling landscape is seemingly over as the Fed started a new monetary easing cycle, with inflation further trending downward likely hitting the Fed's target by the end of 2025. Although real GDP fell slightly short of its 3.1% target, the third quarter saw growth at a 2.8% pace, and the 10-year Treasury demonstrated signs of recovery following the sharp month over month decline in yields prior to the September Fed meeting. A unique dichotomy of robust
consumer spending, and healthy gains from both the job market and wage growth fuel future activity and underpins our positive economic outlook.
Emerging from the high cost of capital environment, commercial real estate has entered an expansionary period of increasing values and improving investor sentiment. This shift is marked by values extending their streak of flat or increasing values to nine months, and U.S. REIT's raising $64.9 billion from secondary debt and equity offerings through the third quarter-surpassing annual totals for both 2022 and 2023. While the recovery will unfold over time, coupled with the prospect of lower borrowing costs, provide powerful tailwinds accelerating transaction activity and a likely robust finish to the year.
Serving as a catalyst, new supply starts were down 23.8% year over year, deepening the supply imbalance keeping availability at the historically low level of 4.7%. This supply constrained environment supports additional rents gains for Landlords, as indicated by rents increasing 2.0% reaching a record high of $25.34/SF. Despite valid consumer spending concerns, retail sales were up 2.3%, consumer spending rose at an annualized 3.1%, and the Fed reports a healthy personal savings rate translating into additional consumer spending. Reflecting this trend, a National Retail Federation survey discovered people expecting to spend a record $902 per person (1.81% from the previous record high set in 2019) on gifts, food, decorations and other seasonal items. Boding well for the retail sector, these fundamentals fortify the sector's positioning as a compelling high-growth area.