Another Indicator the Recovery Will Be Fragmented

If the latest impact survey from NAIOP is an indication, the recovery will be a bifurcated one. The organization conducts routine surveys to assess market activity during the pandemic, and the most recent shows investors continue to be weary about the market conditions. Investment activity has improved for resilient asset classes, but others continue to struggle amid the ongoing pandemic.

The survey asks investors to assess recent investment activity. Industrial was the clear winner, with participants responding that there has been stronger deal activity and new development than in both September and August, the previous two surveys. Activity in office and multifamily, however, has slowed. Investors responded seeing fewer existing asset transactions and new construction deals than in September for both asset classes, and more respondents said they saw no new deal activity in the two asset classes. In retail, fewer respondents reported no new deal activity, and there was an increase in deal flow for both existing assets and new construction and redevelopment deals.