Describe your leasing/investment sales expectations for 2021
Charles A. Breitenother
Principal
NAI KLNB
“From everyone I am speaking and interacting with on a regular basis, I believe local business decision-makers now see the end in sight, though it still may be some time off. For office space users, we expect less downsizing than in 2020 and more leasing activity in 2021. The fatigue of working from home will accelerate leasing activity in the year ahead.”
Owen Rouse
Vice President of Investment Sales
MacKenzie Commercial Real Estate Services, LLC
“Investment sales for 2021 will exceed 2020 levels because (1) investment capital still needs to find a home; (2) interest rate stability will amplify yields to borrowers; (3) COVID-related uncertainty will begin to diminish and allow business-related decision making to advance; (4) the economic benefits from being 50 miles from the capital of the free world and (5) sellers realizing that there is a window to book some substantial, generational gains. These dynamics will be matched against the fewer offerings of a smaller market, compounded by picked-over opportunities and the competitive scrutiny of professional investors.”
Christopher Burnham
First Vice President of Investments
Marcus & Millichap
“For retail investment sales, and many other product types, 2020 was a rollercoaster year that no one wants repeated. Activity solidified at year end for our group as we closed more than 10 deals in December, and we are confident that momentum generated in the fourth quarter will carry over into the first quarter of 2021. We do expect a slightly slower first half of 2021 than normal, but believe that deal activity will accelerate in the second half. Additionally, potential tax changes in 2022 and continued low interest rates will help stimulate transactions.”
Kate Jordan
Principal
Lee & Associates |Maryland
“The seemingly insatiable appetite for industrial product in 2020 continues to bubble over into 2021 with no apparent slowdown. Where there used to be multiple options, only a few exist now. Landlords continue to drive rates and tenants are meeting those numbers because of scarcity of product. This does not seem to be changing any time soon, as industrial land is nearly impossible to come by in our region and most spec buildings are being leased before they are even delivered. E-commerce accounts for a substantial amount of absorption. However, we are also seeing significant demand for freezer/cooler space as well as run-of-the-mill industrial uses which did not appear to be impacted as greatly by COVID. Positive fundamentals exist for the continued strength of the industrial market.”
Peter Z. Garver
Principal
Garver Development
“We think 2021 will show a steady and strong recovery overall. Clearly, certain trends were accelerated by the pandemic, which may cause structural changes for certain product types like office. The recession was caused by COVID, not fundamentals in the economy. I think both users and investors will be more active now that vaccines are on the way, and we generally know how to deal with the virus. Our core investments of self-storage and Class A multifamily should continue to perform well.”