It is little secret that commercial real estate in the Sunbelt states have weathered the pandemic relatively well. Investors are lining up to buy properties in the region, across multiple asset classes. So it should come as little surprise that even the beleaguered office category is showing signs of life, according to Allen Aldridge, senior vice president and co-director of asset management at KBS. GlobeSt.com caught up with Aldridge to talk about fundamentals in this piece of the CRE market as well as other related issues. 

How has the southeast office market been impacted by the current environment? Are there particular cities that are faring better than others?

While every region of the country has been impacted by COVID-19, the Southeast has shown increasing resilience. At the start of the pandemic, there was a lengthy pause in deal volume as lenders and investors assessed COVID's impact on the commercial real estate landscape. However, two strong sales during the fourth quarter of 2020 speak to the strength of the capital markets in the area. In Raleigh, The Dillon, an 18-story mixed-used building, sold for $236 million in November; and in Charlotte, The RailYard, a 296,392 square-foot office building, sold for $201 million in December with heavy competition. Pricing among core, well leased properties has remained solid and stable throughout the pandemic.