Although the global commercial real estate market is still recuperating from the pandemic-induced setback, a more positive trend is beginning to emerge in both investor and occupier markets, driven by eased restrictions across the world and progress on vaccination programs in several countries. The results of the Q2 RICS Global Commercial Property Monitor show that recovery is now firmly underway.
Globally, roughly half of the survey respondents now view the market as being in the upturn phase of the cycle. In the first quarter of the year, only a third of the respondents took that stance. Industrial tenant demand is near all-time highs in the U.S. and Europe, and following a few quarters of falling demand, the office sector is also beginning to stabilize in these particular regions.
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In Asia Pacific, the recovery is not progressing as swiftly as expected. Across the Middle East and Africa, sentiment remains more subdued than all other world regions. However, overall, trends are moving in the right direction. Economist Tarrant Parsons told Commercial Property Executive Senior Editor Laura Calugar that he expects the economy to continue its strong-paced recovery over the second half of the year.
“At this point in time, I would say that we have a more positive outlook for the global economy than any other point since the pandemic started,” Parsons said in the latest episode of our RICS podcast series.
Despite all these reasons for optimism, the more transmissible coronavirus strains that have begun to get a grip on some parts of the world, still pose some risks. Tune in now for an insightful conversation, and don’t forget to follow CPE’s podcasts on Spotify and Apple Podcasts!