The beginnings of a transaction recovery upon the CRE industry, says John Chang, SVP and director of research at Marcus & Millichap in a new video, with all signs pointing to a rebound in volumes in 2021.
Numerous factors coming into alignment have the potential to drive a surge in commercial real estate investment, says Chang. "Transaction velocity has already made strong headway since the second quarter trough. The total number of sales in the fourth quarter of 2020 is estimated to be double the levels we saw in the second quarter."
Investors are also starting to show more optimism. "At this point, it looks like we have made it through the worst of the economic downturn created by the health crisis," says Chang. "Now, instead of focusing on downside risk, investors are focusing on upside potential. Fueling that drive is an unprecedented wave of capital."
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Kelsi Maree Borland
