At the beginning of 2020, the outlook for commercial real estate was very different from the outlook going into 2021. The United States was in the midst of one of the longest economic expansions in the country’s history. In Europe, real estate investments generated firm cash flow and returns, and the Asia Pacific market was primed to enjoy ample liquidity throughout the year. Talk of an impending recession was still only that — talk. Then an economic downturn, thrust into motion by the coronavirus pandemic, rocked the global commercial real estate market, causing global GDP to face its worst contraction since the Great Depression. Nevertheless, moving into 2021, “this too shall pass” seems to be the resounding message among real estate investors.

“For several years, real estate investors have been anticipating a correction, and the COVID-19 pandemic finally provided the catalyst for one,” says Nancy Lashine, founder and managing partner of Park Madison Partners. �