Global Pandemic Has Created Various Headwinds
- Inflationary pressure and supply-chain disruptions will weigh on economic growth, but recession risk low
- Labor shortage driving wage inflation and limiting recovery – Retail and Hotels particularly impacted
- Return to Office remains a big unknown
Despite Disruptions, CRE Maintains Strong Performance
- Apartment and Self-Storage vacancies sit at record-lows while rents are soaring
- Industrial vacancies falling and rents on the rise despite elevated construction levels
- Seniors Housing, ST-Retail and some Hotel segments on road to recovery; Downtown Hotels, indoor malls lagging
Long-Term Outlook Remains Favorable
- U.S. household savings and wealth up significantly from pre-pandemic – Fuels spending and economic growth
- Supply-chain disruptions limit new construction and benefit existing commercial real estate
- Underlying demand drivers to support CRE in long-term
As of 2Q 2021
Sources: Marcus & Millichap Research Services, RealPage, Inc., Costar Group, Inc., Yardi Matrix