How Did Commercial Real Estate Perform in 2Q 2021?
August 2021
Video Highlights
Increased spending, job growth, and the re-opening of the economy supported strong CRE performance in 2Q.
Apartments saw one of the strongest quarters on record with absorption, rent growth, and vacancy all making considerable improvements.
Similarly, Industrial properties saw vacancy decline despite sizable supply additions.
Even retail, a sector many thought would be extremely hard-hit, recorded a vacancy decline in the 2nd quarter.
The office market showed encouraging signs with net absorption turning positive for the first time since the pandemic. The future of remote work leaves the outlook unclear.
The Delta variant of COVID-19 poses some risk, but renewed lockdowns are not expected.
CRE investors remain bullish with the worst of the downturn likely already behind us.