Today we want to go over the real question. What does CRE property looks like today after the results of the Pandemic?
These results are US based off of research for the trending market and statistics. As well as, our own intuitive of where we think the different CRE Properties types are headed.
About two years ago the world came to a halt. The Pandemic was officially announced and changed how we worked, how we functioned, and how we invested. Affecting the major CRE businesses of: Restaurants, Fitness Clubs, Hotels, Airlines, Senior Housing, Movie Theaters, Sporting Venues and much more. The Government spent trillions into the American economy. Known as stimulus checks, the Paycheck Protection Program, Loans and Housing Relief to name a few.
What does CRE Property types look like now and will they recover?
CRE faces their own unique reality and opportunities. Below we summarize and visualize CRE property types and their projected outcome from the Pandemic.
These properties couldn’t care less that the pandemic was happening, as they were hardly affected. Vacancy rates are at an all time low and continue to be.
Multi-family had a soft hit with the Pandemic, but then came roaring back with very low vacancy rates in place.
Also took a small hit, then surged for the better. Vacancy for these are also at an all time low.
Really has a split reality. The Pandemic allowed for the weaker properties to close shop. Restaurants and experiential retail got hit really hard unfortunately. On the other hand, necessity retail such as grocery stores thrived during and after the Pandemic. Overall vacancy rates are now fighting back and moving upwards close to pre-pandemic levels.
Probably took one of the biggest hits from the Pandemic. However, the hotel business is seeing some promising numbers for the upcoming summer season and are expecting a high occupancy to return to normal.
Also hit pretty hard, and they will continue to face a lengthy recovery cycle as the industry adapts.
Still Faces some uncertainty, but with COVID restrictions relaxing we should see a strengthened demand for space.
CRE properties were hit and some harder than others. The projection is moving positively upwards and we expect for the industry to not slow down.
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