U.S. commercial real estate Q2 review and outlook

The COVID-19 crisis froze commercial real estate investment markets in the second and third quarters of 2020, which started to thaw in the fourth quarter as demand for multifamily and industrial properties started to heat up. Now with more than 12 months of post-pandemic data, there are encouraging signs for real estate investment activity, said Manulife Investment Management.

Property owners were well funded pre-pandemic, and rather than over-indebtedness precipitating the downturn, as it did during the global financial crisis, it was demand shock that pulled the rug from under commercial property markets. This fundamental difference in market conditions should help carry property markets forward as they emerge from the pandemic-induced slump. And as inflationary fears have begun to rise, an increased allocation to commercial real estate may prove invaluable for those most committed to preserving capital.

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