As is the case with a new year, we started 2021 by looking back at the trends, events and companies that shaped the real estate industry in 2020. The tallest new buildings of 2020, the places where office sales volume shot up last year, as well as the performance of net lease cap rates were on our radar in January. But a new beginning also brings along the opportunity to look ahead at what the new year has to offer. In a conversation with three commercial real estate experts, we discussed how they expect the market to perform in 2021. We also sat down with Avison Young’s Greg Martin to talk about what’s ahead for the office sector. Considering that commercial construction activity declined last year, we looked at how costs are likely to impact deliveries in 2021 and beyond, as well as where to find the best markets for commercial real estate development this year.
And with a new administration in the White House, the real estate industry has taken stock of President Biden’s agenda. Biden’s climate-focused executive order signed toward the end of the month could have deep implications for the industry, moving away from the previous administration’s climate regulation rollback measures.
As the number of COVID-19 cases throughout the country continued to rise in January, vaccine rollout is expected to play a significant role in economic recovery. According to an Integra Realty Resources report, vaccines could help office workers return to the physical office as early as the third quarter, while the industrial sector will be in recovery or expansion mode this year. In the last week of January, Google announced the opening of its office spaces as vaccination sites.
In a sign that 2021 is shaping up to be much brighter for transaction activity, the year kicked off with the closing of a few noteworthy deals and investment vehicles: Americold Realty Trust’s $1.7 billion acquisition of Agro Merchants Group, KKR’s $1.7 billion investment fund in the Asia Pacific, MedCraft Healthcare Real Estate and Cadence Healthcare Group’s $500 million medical office building investment platform.
Here are CPE’s must-reads for last month: