Commercial real estate values return to pre-pandemic levels in many markets

Commercial real estate values have returned to pre-pandemic levels in many U.S. markets, continuing a recovery throughout the first half of 2021 that began at year-end, finds a new CBRE survey.

The CBRE survey found that more than two-thirds of real estate investors exhibited increased risk appetite in first half of 2021. Investors now broadly expect cap rates to remain stable or compress across most property types through the end of the year.

“The rapid recovery across U.S. real estate markets was mostly made possible by the massive fiscal and monetary response to the COVID-19 downturn that stabilized the economy and benefited property values,” said Chris Ludeman, global president of capital markets for CBRE. “While some uncertainty remains, a strong economic recovery will continue to benefit property fundamentals, investment volumes and values.”

CBRE’s survey, which examined capitalization rates for stabilized properties and investment sentiment on