Residual Covid-19 Ripples Still A Significant Factor for CRE
Pre-COVID-19 CRE Revenue Growth Was Stable
- From 2014 to 2019 most property types recorded total average revenue growth between 20%-25%
- This period was relatively “normal” and stable
Shocks and Revivals Can Disrupt The Trend
- Despite stable long-term return growth, CRE revenues can face significant shocks like the global financial crisis
- By the same token, the shocks of 2021-2022 affected each property types in a different, unique way
What Investors Can Expect in the Near-Term
- The market remains disrupted, but likely moving back toward normalization for most property types
- Office properties still face significant uncertainty, but CRE supply and demand are slowly moving back into alignment
*Through 1Q
Sources: Marcus & Millichap Research Services, CoStar Group, RealPage
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