National Recovery is Just One Piece of the Story
- The move towards a full national reopening will bode well for the economy and commercial real estate
- But the pandemic has impacted every market differently, with some seeing rapid recoveries and others lagging
Fragmentation Occurring in Commercial Real Estate
- Nationwide, Apartment and Retail rents are down slightly, Office is down moderately, and Industrial rents rose
- However, Inland Empire and Sacramento Apartment rents rose 11% and 7%, while San Jose rents dropped 16%
- This bifurcation is found across all property types and metros, creating drastic variance in the local level
Investors Must Pay Attention to Local Nuances
- The situation can differ greatly from market to market, even within the same state
- Investors should understand national trends, but also be aware of the variance between individual markets
- Leveraging experts on particular property types and markets will be crucial for crafting an investment strategy
* As of 1Q 2021
Sources: Marcus & Millichap Research Services, RealPage, Inc., CoStar Group, Inc.,
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