Read: 11/2020, Source
- All sectors will benefit from the widespread availability of a vaccine.
- “Overall, we expect the real estate recovery—particularly the office sector—to lag the broader economic recovery by several quarters. This follows the pattern of previous cycles, but with the added complication of getting people back into the workplace,” said Richard Barkham, CBRE global chief economist and head of Americas research.
- “Two factors are essential for this recovery to take hold: a medical resolution to COVID-19 through a vaccine and other measures, and another fiscal stimulus package.”
- In real estate capital markets, CBRE expects that the improving economy—alongside aggressive quantitative easing by the Federal Reserve—will hold values stable and, in some cases, put downward pressure on capitalization rates.
- For now, a wide gap remains between buyers seeking discounts and sellers not willing to offer them, but this will narrow over the course of the year.
- Investors have about $300 billion earmarked for real estate investment, much of it in North America.