New Commercial Real Estate Data Shows a Surprisingly Good Pandemic Recovery
March 16, 2022
Warehouse space and apartment complexes were big winners for the nation’s real estate industry in 2021, according to an analysis by Altus Group. Industrial real estate marked a 44.5 percent non-leveraged appreciation last year, spurring a 26.7 percent average gain since 2019. Demand for warehouses and the ongoing supply chain crisis make the sector poised for continued growth. Retail and office space didn’t fare as well. While the value of bricks-and-mortar stores fell more than 12 percent, the sector is showing promise as new hybrid models blending e-commerce and traditional retailing take shape. As for office properties, valuations of downtown buildings are returning from the pandemic more slowly than those in the suburbs. “The impact of the pandemic is beginning to feel like a distant memory and the second act of the recovery is so far well-received. We still need to wait and see what the third act has in store for us and whether factors like inflation and recession make an entrance,” according to Propmodo, a California-based news service covering the real estate industry.
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