Commercial real estate (CRE) has had a very volatile year. At the start of 2020, commercial real estate was well poised for continued growth and expansion with high optimism among all sectors, but the onset of the global pandemic shook the CRE market, turning many sectors upside down and creating uncertainty and concern for short- and long-term performance for many sectors. As 2020 comes to a close, let’s see how commercial real estate has fared and things to look for as we move into a new year.
The impact of coronavirus on commercial real estate
Initial shutdowns relating to the global pandemic caused major disruptions to the commercial real estate market in Q2 2020. Supply-chain interruptions, government mandates, and social- distancing protocols created a shift in demand across all sectors. As the economy started to reopen in early to mid summer, several sectors saw improvements returning to more normalized activity