A Look at CRE Post-Pandemic

After nearly two years of paused transactions, prolonged decisions, and gun-shy buyers and sellers, the commercial real estate industry is slowly but surely growing with renewed optimism. The primary difference is that more deals are getting done, even if with a bit more caution in comparison to life before the coronavirus pandemic.

In the chaotic early days of the virus, most brokers were in survival mode, with tours prohibited and many deals collapsing. As the months went on, many brokers explored new geographies to rebuild their business. The year quickly became less transactional and more informational.

While many brokers’ confidence grew as the vaccine became more widely available, they were still left having to deal with more complex issues than damage control, like supply and talent shortages. To this day, many are unable to even quote a deal because of how backed up they are.

One key takeaway from this is the need for preparedness. This industry is cyclical, in which case market disrupters are bound to occur. Nurturing relationships is the key to this preparation. As the market began to improve, clients with close relationships to their brokers were able to trust them more and more. As more players get back into the market, both sellers and buyers are becoming more hopeful for where things are going.