There’s no doubt that the pandemic has had far-reaching consequences for industries worldwide. In my business, the pandemic created several great markets (residential development and industrial); a sandstorm in our area of office space leasing (no one knows where we are going yet) and has devastated other segments (retail and hospitality). One other segment that was crushed is commercial real estate sales volume. And we’re not through it yet. We will be feeling the impact for years to come.
The National Association of REALTORS® Research Group put out a report for Q1 2021 reflecting on the commercial market’s recovery. Some takeaways:
–The pandemic crashed all commercial sales volumes. Everything was put on hold. See the graph below.
–The markets are still recovering.
–There is a lot of cash on the sidelines ready to jump in
Sellers believe the worst is behind us. Buyers are facing an uncertain recovery creating a buy vs sell gap in pricing. Read more in the Commercial Real Estate Trends & Outlook and give me a call or email if you want to discuss in detail.