The year 2021 should be a bright one for commercial real estate, according to asset manager DWS Group. A combination of strong economic growth, low real yields on bonds, and rising inflation "are key ingredients for robust real estate performance," a statement from the company said. Returns should be greater than 20%, according to the firm's forecast.
"It was a very short-lived real estate recession [during the pandemic], for sure," DWS Group's head of Americas real estate Todd Henderson tells GlobeSt.com. "The down cycle was much shorter than we've experienced in past recessions."
Also notable was divergence of the performance among property sectors. It was the "the most significant we've ever seen in," Henderson says, pointing to industrial as the "clear winner" and retail as the "laggard."
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