2021 Commercial Real Estate Outlook – Pot of Gold At The End of The Year?
When looking at the 2021 economy everyone is trying to figure out how things will go. The general hope is that by the 4th quarter if not sooner things will really pickup given that many people will be vaccinated by then. But there are a lot of variables out there. Most important are the mutations of the virus and whether or not the vaccines will protect against them. If they don’t, there will be yet another wave of infections, shut downs and deaths. If that doesn’t happen I do think things will improve by the 4th quarter but what concerns me is what happens between now and then.
Many companies have been barely hanging on and will not be able to survive until then. Also the fallout from retail, hospitality, multifamily, entertainment and office properties going into foreclosure will continue to unfold all year. Some companies will order their office employees back to the office while others will see no reason to incur the risk of doing so. I don’t see a switch going on where things get back to the old normal. It will be this way for quite some time so get used to it. Face masks are not going away and neither is the virus. We will eventually figure out how to live with it, at whatever cost. Who would have thought that a pandemic would so quickly transform so many parts of the commercial real estate industry?
As always thanks for reading! Stay safe and have a great day.
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