New construction across all CRE sectors was "underwhelming" in the fourth quarter, underscoring the pressures the industry is feeling from widespread labor and materials shortages and uncertainty surrounding the COVID-19 pandemic.  

Thomas LaSalvia of Moody's Analytics REIS says "2021 will likely be remembered as a trough for near-term supply growth," and points to data suggesting that multifamily and office completions will finish down 30 to 40% of recent averages, while retail will show declines closer to 80%. 

"The minimal new inventory continues to help prop up both rents and occupancies across all three sectors," LaSalvia writes in a new analysis, referring to multifamily, office, and retail. "Multifamily demand rebounded in a considerable way during the second half of the year, and with only about 150,000 new units brought to market in 2021, rent increased with unprecedented ferocity. While both office and retail performance remained relatively flat during the year, this is nearly as impressive given the negative demand pressures on the two sectors. In these circumstances, the lack of supply helped to stabilize space market performance."