Institutional Bellwether or a Warning Shot?
It was reported by Peter Grant in this week’s Wall Street Journal’s Property Report that the commercial real estate sales are still on a big trajectory. The article entitled, “Covid-19 Fuels Best-Ever Commercial Real-Estate Sales,” states the winners in the past year were multifamily and warehouses in the property sector and the Sunbelt in the demographics sector. None of this is a surprise as we’ve seen a continuing of the population moving to the southern climes and a strong demand for apartment rentals in these areas and a significant growth in the need for logistics and distribution and much of this brought on by the pandemic.
Tracking data from a recently released report authored by Alexis Maltin from the data firm Real Capital Analytics shows that a record of $809 billion of total was transacted in 2021 which is 33% increase over $600 billion if 2019 which held the previous record.