The global recovery for the retail, office, and hospitality sectors is underway but will likely take another 24 months to hit pre-pandemic levels, according to a midyear report from CBRE. 

But despite rising concerns about COVID-19 variants and high inflation, the firm predicts pent-up demand, stimulus and reopening plans will drive growth globally over the next year for the CRE markets. CBRE predicts peak growth in GDP for the Americans and APAC this year led by the US and China, while Europe is forecast to hit its strongest GDP in 2022. Global investment volume is likely to increase by 23% this year, the firm says.

"The global recovery is well underway, but it will take several years for some sectors to approach or return to their pre-crisis levels," said Richard Barkham, CBRE Global Chief Economist and Head of Americas Research. "Concerns about inflation likely will cause some market volatility, but we anticipate that central banks won't need to raise interest rates in the next 12 months. This will support economic growth for the next two years and create a positive environment for commercial real estate."