New report highlights how real estate sectors are adapting to pandemic
While COVID-19 caused a national economic slowdown, the commercial real estate industry has felt the effects unevenly across geographies and property sectors. Fourth-quarter market reports from Transwestern Real Estate Services (TRS) illustrate that while the office sector is suffering its worst downturn since the Great Recession, the industrial sector is surging ahead to meet an uptick in demand for logistics space fueled by trends reinforced during the pandemic.
OFFICE SECTOR The economy suffered significant job losses in the first half of the year but has recovered 66% of office-using jobs lost since March 2020. Tenants are delaying major real estate decisions until there is greater clarity on the vaccine rollout timing and a safe return to the workplace. Nationally, office vacancy rose to 11.3 percent and another 35.7 million square feet of negative absorption was posted in the fourth quarter. Asking rents reflected 2.6 percent annual growth at year