USAA, Square Mile releases 2021 outlook market report

Early indications suggest the recovery will be uneven across the United States. Both the fiscal and monetary response will heavily influence the pace of the recovery once a vaccine is widely available, stated USAA Real Estate and Square Mile Capital in their 2021 market outlook report, 2021 House View.

In addition, price discovery for real estate properties is still emerging. Distress conditions will be unevenly distributed. Some property types (e.g., logistics) will enjoy enhanced performance, while others (such as retail) will experience more disruption.

Market participants remain focused on price discovery in the near term, as private-sector valuations have yet to reflect the pandemic’s impact on commercial real estate markets accurately. The NCREIF Property Index, for instance, has seen cumulative write-downs of just 2.7 percent in the first three quarters