How is CRE Performing two Years into the Pandemic?

Economic Landscape Looks Significantly Different

• During pandemic onset, millions of jobs were lost, businesses shuttered and uncertainty was widespread
• Today, inflation remains a concern, but most economic metrics are near or above their pre-pandemic levels

Behavior Changes Benefited Some CRE

• Greater eCommerce adoption and increase in store inventories pushed Industrial vacancy to a record low
• After initial softening, rise in household formation is driving Apartment space demand
• Self-Storage benefited from disruptions to school and work life and changes in living arrangements
• Necessity Retail thrived during the pandemic while other types, like experiential retailers, are now recovering

Momentum Shifting for Impacted Property Types

• Hotels suffered a strong initial impact, but rising business and leisure travel could boost summer occupancies
• Seniors Housing faces lengthy recovery as industry adapts to the new operating climate
• Office outlook uncertain, should benefit from relaxing restrictions and continued job growth

*Self-Storage includes 1Q data for 2019 and 2020
MT = Multi-tenant: ST = Single-tenant
Sources: Marcus & Millichap Research Services, RealPage, Inc., CoStar Group, Inc., Radius+

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