{"id":1004536298,"date":"2021-05-20T05:44:39","date_gmt":"2021-05-20T13:44:39","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004536298"},"modified":"2022-12-08T20:37:01","modified_gmt":"2022-12-09T04:37:01","slug":"post-pandemic-comeback-predicted-for-cre","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/post-pandemic-comeback-predicted-for-cre\/","title":{"rendered":"Post-Pandemic Comeback Predicted for CRE"},"content":{"rendered":"
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New York City skyline. Image by ben o’bro via unspash.com<\/p><\/div>\n

Commercial real estate is ready for a rebound, and industrial will lead growth over the next three years, according to the economists and analysts interviewed for the Urban Land Institute\u2019s semi-annual Real Estate Economic Forecast released Wednesday.<\/p>\n

The office sector is projected to rebound by 2023 after several years of vacancy increases and rent decreases.<\/p>\n

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READ ALSO<\/strong>: Top 10 Markets for Industrial Transactions in 2020<\/a><\/p>\n

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Based on the opinions of more than 40 economists and industry analysts, ULI\u2019s forecast provides predictions for 27 economic and real estate indicators including housing prices, employment, GDP, inflation, vacancy rates and housing starts. Rents for five property types including industrial and office are also included.<\/p>\n

The responses from the experts were a reversal from some of the pessimistic forecasts from the spring of 2020<\/a>, soon after the COVID-19 crisis had hit, ULI leading member William Maher said in a prepared statement. Maher, director of strategy and research at RCLCO, said the current forecast goes even further with several of the forecasts now ahead of long-term averages.<\/p>\n

\u201cAmong the 2021-2023 metrics predicted to outpace long-term averages are GDP and employment growth, the unemployment rate, real estate transaction volumes, warehouse and apartment occupancy and rent growth, and single-family housing starts and price appreciation,\u201d Maher said.<\/p>\n

Transactions dropped by nearly 30 percent from $598 billion in 2019 to $427 billion in 2020\u2014the lowest volume in seven years but well above the declines seen during the Great Financial Crisis. The report stated volume is expected to recover quickly over the three-year forecast period, reaching $500 billion in 2021, $550 billion in 2022 and $590 billion in 2023.<\/p>\n

\u00a0More key findings of the report, issued Wednesday during a members-only webinar, included:<\/p>\n