The Society of Industrial andOffice Realtors has just released its June survey examining theeffects of the COVID-19 pandemic on its North American members'current transactions and level of confidence in regional markets.And while SIOR found that office real estate brokers are continuingto face challenges, the industrial sector is gaining strength asthe pandemic persists. 

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The June survey is the thirdmonthly survey from the professional organization, which in Aprilbegan to examine COVID-19′s effect on markets. June's surveyrepresents the highest confidence level for the office andindustrial markets combined, with an increase from 6.22 to 6.61since May.

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This confidence did vary byregion and market, however. SIOR members in the Global regionreported shifts in both directions, with industrial confidenceincreasing 6.3 to 7.3 and office confidence dropping 6.8 to 5.9.The Central region, however, saw decreases to industrialconfidence, dropping from 6.1 to 5.21 over the past month. TheNortheast saw the greatest increase for the office sector of anyregion, jumping from 5.5 to 6.6 region.

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The survey also noted changes inthe status of current transactions. On schedule transactions jumpedas a percentage of total transactions from May to June, increasingfrom 31% to 37%. Those gains were primarily due to the industrialsector, which saw on schedule transactions increase from 31% tomore than 41% over the past month. The office sector, meanwhile,saw a slight drop of less than one percent in on scheduletransactions.

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SIOR Global President Mark Duclossaid that he sees a clear trend emerging over the past threemonths, one that favors industrial growth.

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"E-commerce continues to be asignificant driver for industrial and in many ways, 2020 is likelyto reflect that. On the office side, deals are still being done,albeit at slower and reduced levels," Duclos says in preparedremarks. "Many companies are determining how to have employeessafely return to work, and finding some logical solutions couldtake time."

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Zach Warren

Zach Warren is the editor-in-chief of Legaltech News. Based out of Minneapolis, Minnesota, Zach has been with LTN since 2015. He can be reached at [email protected].