More than a year following the beginning of the COVID-19 pandemic, many would have expected commercial real estate to be in a distressed state.
Yet, by most measurements, commercial real estate has remained remarkably resilient. And thanks to aggressive stimulus measures during the crisis, it seems positioned to thrive. The continuation of low-interest rates has made the prospect of investing in CRE all the more attractive, and plentiful dry powder is set for deployment. Even the looming threat of inflation could increase real estate’s attractiveness. Long-term leases often include rent increases tied to inflation and rising construction costs can create supply constraints. Additionally, leverage or debt, which most investors employ in their acquisition and ownership of properties, can counter inflation as the value of that amount owed erodes with the effect of inflation.
Our Q2 2021 white paper explores and analyzes Crexi’s internal marketplace trends to better understand buyer, seller, owner, and tenant behaviors overall and across specific asset classes. With these learnings in hand, we seek to arm our readers with the insights they need to make informed commercial real estate decisions.