Advertise, Promote, Attend, Create – Work with Connect.
A full service marketing and PR agency.
Meet the team behind the machine and taste a little of the secret sauce.

National CRE News In Your Inbox.

Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.

Sub Markets

Property Sectors

Topics

National  + Finance  | 

CRE Pricing Rebounds, Despite Empty Offices and Hotel Rooms

More than a year into the pandemic, high-rise office buildings are largely empty, as are one of every two hotel rooms. Malls are struggling to attract shoppers.

But by most measures, the U.S. commercial real-estate market is in remarkably solid shape, the Wall Street Journal reported. Prices fell far less than after the 2008 financial crisis and are already rising again. The number of foreclosures barely increased. Pension funds and private-equity firms are once again spending record sums on buildings.

The WSJ reported that the market’s resilience shows how the federal government’s aggressive efforts to support the economy kept landlords from suffering steep losses. Banks have also offered delinquent property owners some slack, rather than foreclosing aggressively.

This support won’t last indefinitely, and there could be a rude awakening for investors when it starts to wane. Commercial property owners will have to contend with remote work’s threat to the office market, the dearth of business travel and the broad decline of the mall business.

Yet, a number of big global pension funds have been raising their allocations to commercial real estate, the WSJ reported.

Between March and May last year, commercial real-estate prices fell 11%, according to Green Street. Prices since July have increased 7%, erasing more than half their pandemic declines.

That’s in sharp contrast to the 2008 financial crisis, when prices in the U.S. fell 37%, Green Street said, and took years to recover.

Connect

Inside The Story

Green Street

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

Step 1: Select Education
  • ◦Sale/Acquisition
New call-to-action
Money360-28-cube
Colliers-59-cube
TaylorStreet-05-Cube