Commercial real estate activity remained relatively tempered compared to 2019 levels. This is in stark contrast to the global M&A market, which experienced another record quarter. Supply disruptions and labor shortages have continued to impact development and create issues for lodging and hospitality assets. Even though they are seeking to ramp up operations as the economy reopens, many cannot find enough employees to adequately staff their properties despite unemployment rates remaining near 6%. The labor challenges and supply shortages for crucial goods such as lumber have also driven price increases, which presents challenges for developers and could indicate a larger issue of general inflation. Despite these challenges, the financial markets and availability of capital provide a ripe environment for deal making so when investors are ready to deploy more capital, a surge of activity is likely to follow.
For further analysis, insight and outlook into the multifamily housing, office, retail, industrial and capital market industries, continue reading the Q2 2021 report.