The Three Property Types That Outperformed In The Pandemic
Demographic Trends Support Strong Apartment Outlook
- Post-lockdown job recovery and household unbundling led to record 218K Apartment units leased in 2Q 2021
- U.S. vacancy fell to 3.8% despite elevated construction
- Majority of investors expect 6.7% value gain over next year, driven by positive demographics and job growth
Pandemic Behaviors Bolstered Industrial Performance
- Retailers focus on “just in case” inventory and reliance on eCommerce boosted Industrial demand
- Amid 5 years of outsized construction, vacancies remain tight at 5% in 2Q; rent growth picked up to +5.9% Y-O-Y
- Industrial investors remain optimistic: 74% anticipate average 7.4% price growth in the next year
Disruption of Normal Life Creates Need for Storage
- College students back at home and need for home office space, pushed Self-Storage vacancy to 5.5%
- Values expected to rise 6.3% as recession-resistant nature of Self-Storage likely to new investors to the sector
*As of 2H 2021
Base: All respondents; bases vary by property type currently invested in.
Sources: Marcus & Millichap Research Services, M&M/WMRE Investor Survey