A new report from CBRE finds that the US is in recession with GDP declines expected in the first and second quarter. It forecasts that the economy will stabilize in the third quarter, start to recover in the fourth, and grow at more than 5% in 2021 due to pent-up demand and major government stimulus.
The US commercial real estate recovery will trail the economic rebound and span 12 to 30 months, depending on the sector, it said, with categories like industrial and logistics recovering within the year, and multifamily over 18 months. Retail, food and beverage and the hotel sector are facing a longer recovery of up to 30 months.
There will be no quick fix in the real estate industry, says Richard Barkham, global chief economist and head of Americas Research. “It will take several years for vacancy rates to fall back to their pre-crisis levels.”
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