Just two years ago, more than 20 million people lost their jobs at the onset of the COVID pandemic. Companies were scrambling to transition their workforces to remote work, toilet paper was in relentlessly short supply, and the outlook for in-person businesses was bleak at best.

Now, people are going back to the office – and into gyms, movie theaters, restaurants, and pretty much everywhere else. And that bodes well for certain CRE asset classes more than others, according to Marcus & Millichap's John Chang. The US has replaced 95% of the jobs lost at the pandemic's onset and Chang predicts a return to pre pandemic levels this summer. Retail sales are also 27% higher than pre-pandemic levels, while household savings are at an all-time high.

"In just two years, we went from a very bleak, uncertain future to a comparatively stable positive outlook," Chang says. "Yes, there's a bunch of noise about inflation, interest rates, and the possibility of a recession, but the momentum is very positive."