The Commercial Real Estate Recovery Gained Momentum in 2021:Q2
July 26, 2021 | Calvin Schnure | Nareit
The recovery in commercial real estate markets is proceeding unevenly across the various property types through the second quarter of 2021, according to data recently released from CoStar. Overall, recent trends are encouraging that the recovery is gaining momentum as the economy reopens.
The sectors that had been weakest during the winter and early spring either show early signs of stabilization (office) or are beginning to improve (retail). Meanwhile, sectors that had begun to recover last year (apartments) or had continued to grow during the pandemic (industrial) saw record increases in demand, falling vacancy rates, and rising rents.
The data from CoStar do not cover other property sectors that are important in the REIT universe (including lodging/resorts, self storage, and the tech-related sectors of data centers and cell towers), but other news indicates that the economic reopening is strengthening the recovery in these sectors as well.
