SIOR Experts Reveal Signs of Recovery in Commercial Real Estate
By Natalie Jones / 11.19.20 / 3 min read
With several indications of pandemic-related economic distress in commercial real estate, many are concerned about the industry’s ability to recover. Shorter-term office investments, changes in retail rents, and other results of COVID-19 have made the future unclear. However, recent insight from SIORs (Society of Industrial and Office Realtors) has promising news for commercial real estate.
The Snapshot Sentiment Survey, a monthly feature from SIOR, indicates that the industry is more stable compared to six months ago. SIOR global president Mark Duclos, SIOR, president of Sentry Commercial in Hartford, CT, explained why results are different compared to earlier in the year.
“The results of the September survey indicate that the CRE industry is in better shape than many would have thought when the pandemic began,” said Duclos. “When SIOR started surveying in March, there were projects on hold or canceled and a lack of third-party execution on deals. Early on, people were seeing a lot of unprecedented things and just not knowing what the future was going to look like. Now there is definitely more clarity and optimism.”
The on-hold transactions, third party delays, and cancellations that Duclos mentioned have continued to decline. Only 26.1 percent of deals were completed in April, yet the current completion percentage is at 56.7 percent.
According to Duclos, there are three notable findings from the September survey: how the news cycle led to short-term sentiment in the beginning of the pandemic, the resilience of the industrial sector, and the office sector’s calmness. Sentiments for the office sector are higher than expected at this time.
Recovery for commercial real estate may be a lengthy process, but these SIOR insights provide reassurance that the industry is headed in the right direction. Martin is proud to have the only two SIORs in Mid-Michigan, Van Martin and Christopher Miller, as leaders who have used their expertise and adaptability to navigate these times.
For more information about the survey and SIORs’ perspective, check out our source HERE.