The Azucena Take: The Return of Prosperity

Since the start of 2021; I have been discussing the possibility of a stellar economic recovery backed with the research done by Marcus and Millichap. That possibility has been growing into a reality as we witness a return to normality.  

Governments are lifting the restrictions on business and public gatherings as more people get vaccinated. Combine that with the fact a lot of us have been in quarantine for a year and you have a demand to enjoy life. The data backs this up as showcased by the growth seen back in March 2021:

• Employment is at +14 million while unemployment claims have dropped by 6.0%.

• Consumer confidence is 110 points (a +19.3 jump from January).

• ISM index for non-manufacturing hit an all-time high of 65 points.

• ISM index for manufacturing is at its highest level in 40 years.

• The number of domestic air travel is on the rise since February.

Investors who prepared for the post-pandemic economy will be reaping the rewards in no time. Many expect to see a boom for hotel property and entertainment venues during the Summer. Retail property in desirable locations is already seeing more foot traffic and the numbers are expected to grow.

While interest in every property type grows, there are still uncertainty in the future of office space. Several major companies have announced a slow return to the office starting this Summer. However, they are not abandoning the work from home concept entirely and will be working to establish a hybrid model. Thus, it will take some time for interest in office spaces to grow.

We are going to see a new era of economic prosperity. Thankfully there is still time to invest for those who waited.