The Azucena Take: Strong Expectations for Commercial Real Estate

I get asked a lot if there is a revival in commercial real estate and the short answer is yes (it was happening for some time).

That is not the end of this Azucena Take as nobody can make a major decision based on a simple answer. The pandemic caused a lot of disruption but there has been economical gains that are continuing in 2021. Given the current trends, economists are forecasting that we will see one of the strongest recoveries since 1984.

So what is driving this economic recovery? Government stimulus and vaccine roll outs together have build confidence among investors who are preparing for a post-pandemic economy. This will all have a prosperous impact on the commercial real estate market.

Based on the data collected, Marcus & Millichap is expecting growth in several sectors in a post-pandemic economy. Investors are already anticipating a boom in the entertainment and travel sector starting in late 2021. We also anticipate interest in more retail space around the same time or in early 2022. New office strategies will also play a role in investment opportunities based on a companies work from home policy.

Even if the economy grows at a small 5% growth rate, it will result in major gains for commercial real estate investors. This will also set the foundation for a more prosperous 2022 and beyond. All of this only demonstrates that now is a good time to start investing in commercial real estate.