The difference a year can make is going from 21% expectations of a bull CRE market in 2020 to 74% in 2021, according to DLA Piper's latest State of the Market Survey.
"And most of those bulls are pointing to the continued rollout of the vaccines and opening of economies, as well as an ample amount of equity and debt capital," John Sullivan, chair of DLA Piper's real estate practice, tells GlobeSt.com. "For most asset classes, the fundamentals pre-pandemic were good. It wasn't an asset bubble that burst. It was a black swan external event."
Unlike 2008, where real estate was highly leveraged and, as a result, financially shaky in the face of trouble, "debt is plentiful and cheap and attributing to people's bullish outlooks," Sullivan adds. "And helpful for the markets."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
