MarketSnapshot: Q3 2021

Market Snapshot - Q3-2021

 

  • Market data, charts & graphs of current and historical trends across single-tenant office, industrial and retail properties, as well as multi-tenant retail
  • Overall market trends
  • Market summary & analysis
  • Economic data points

 

CRE markets show growth and momentum, but industries are impacted by a number of challenges

Following the close of the third quarter, both the single-tenant net lease market as well as the multi-tenant retail sector are reporting strong year-over-year growth. Investment sales volume for shopping centers is up an incredible 211 percent from third quarter 2020, while the overall net lease market reported in excess of $20 billion of activity in the last three months, making it the sixth strongest quarter on record. Despite the positive momentum, the market continues to see some lasting effects from the pandemic. Here are a few of the top trends we see impacting the market for the remainder of 2021 and into 2022:

Icon1 Low Interest Rates & Strong Buyer Demand | Rates are low and capital is available, and this has been an attractive combination for investors. Without an increase in rates or a tightening from lenders, this environment will continue to fuel buyer demand.
Icon1 Lack of Inventory | Unfortunately for buyers, there continues to be a lack of available inventory across all product types. Multi-tenant retail, for example, has been impacted in recent years by a lack of new development, while industrial investors are having an increasingly difficult time finding yield.
Icon1 Supply Chain Issues & Labor Shortages | As we approach the holiday shopping season, many retailers are encouraging consumers to start early. Expected delivery delays combined with supply shortages may present challenges for retailers. Additionally, in what some are calling “The Great Resignation,” a high number of employees are leaving the workforce or switching jobs, and employers across all industries are now facing labor shortages.
Icon1 Inflation | Inflation remains a concern for investors and consumers, with CPI rising 5.4 percent during the 12 months ending in September 2021. Costs are expected to rise for a number of goods and services, further complicating the impact to retailers.
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