Why Investors Still Have Reason to Be Optimistic in CRE

Although uncertainty is running rampant in the commercial real estate market, Dianne Crocker of LightBox says that there are still plenty of reasons for investors to be optimistic. Crocker notes that the strength of the market leading into the pandemic as well as the ample capital chasing deals all bode well for the future of the market.

“Notwithstanding the fact that true market recovery won’t happen until the health crisis ends, there are several factors that bode well for the commercial real estate sector right now,” Crocker, the principal analyst for LightBox, tells GlobeSt.com. “One is that before the pandemic took hold, the market was in a positive position. Fundamentals in every asset class were strong, capital was abundant and the forecast called for loan origination levels that were at least as high as 2019’s. While the relative strength of the market varies considerably now by asset class and metro, there is still a great deal of capital looking for a home in U.S. commercial real estate so this bodes well for its recovery.”