Analysis

A "tectonic shift of capital" is coming to CRE, which could whip up valuations further.

Vacancy rates for regional and super-regional malls shot up 90 basis points in a single quarter to hit a record 11.4%.

Once COVID-19 hit, the sublet space increased dramatically, jumping 61.7%, while available direct space has surged by 50%.

In Q1 2020, leasing totaled just 2.0 million square feet.

Also, with consolidation SFRs will have a bolstered ability to absorb new flows of institutional capital without hurting return.

"If investors believe people will return to the urban core, there could be opportunities to invest ahead of that movement."

For example, demand for industrial product was also more selective and deals in general focused more on lower cost-of-living markets.

There has been a 15% increase in the use of office space for collaboration during the pandemic.