Commercial real estate investor’s confidence continues to return as the market improves. The Matthews™ Investor Outlook Survey conducted in September illustrates this with 42.35 percent of investors showing concern for COVID-19’s impact on CRE, a 12.82 percent improvement compared to last month. Industrial is booming with the launch in e-commerce sales, and multifamily investment swells as investors become more active. At the same time, retail adjusts to customer’s new norm, and office learns to evolve.
Even with falling deal volume, cap rates across the board have shown no signs of weakness. Investors predict a pricing correction in the near-term, even though the distressed deals that will present the new pricing has yet to appear. While COVID-19 may have brought disruptions, it ultimately accelerated many CRE trends and will bring a much-needed update in operations for lagging sectors.
This report details the current state of the commercial real estate market sectors in September 2020.