U.S. GDP grew by 4 percent in fourth quarter 2020, according to the Bureau of Economic Analysis.
The result was in line with CBRE’s forecast but below consensus expectations of 4.3 percent. In addition, CBRE expects the U.S. economy to grow by 1.3 percent in first quarter 2021. Beyond then, fiscal support and widespread vaccine distribution is expected to fuel stronger growth. Annualized growth in the second and third quarters is expected to reach 6.4 percent and 9.2 percent, respectively. For the full year, CBRE expects GDP will grow by 4.9 percent, with upside potential should the federal government enact additional stimulus.
Robust growth in 2021 will support a recovery in commercial real estate fundamentals. Industrial and multifamily will see the strongest performance during the near term. A recovery in office demand will depend on widespread vaccine distribution and occupiers returning to the office. Likewise, CBRE expects recovery for retail and hotels will de
