CPE’s February 2021 Must-Reads
- Mar 05, 2021
During the second month of 2021, we stayed focused on how commercial real estate leaders expect commercial real estate to perform this year. According to the CPE 100 Sentiment Survey, capital for real estate borrowers is expected to be plentiful, but many of the challenges to securing it that emerged in 2020 are likely to linger. JLL predicts that the construction industry faces another challenging year; the volume of work is projected to decrease, while costs will increase, resulting in as much as an 8 percent decline in overall nonresidential construction. And with the industrial sector benefiting from last year’s e-commerce surge, we sat down with DAUM Commercial’s Gus Andros and Andrew Lara to talk about what’s ahead for the Inland Empire’s industrial market.
We also took time to assess 2020 with a series of rankings that deepen understanding of the industry in an extraordinary year. We examined the top markets for office transactions in 2020, the top 10 office completions last year, as well as the top 10 markets for industrial transactions. These rankings shed light on how the pandemic has re-shaped investment activity, and you may be surprised by some of the entries.
Most conferences moved online in 2020, to prevent the spread of the coronavirus, and the trend is continuing this year. In February, we attended the Mortgage Bankers Association’s 2021 Commercial Real Estate Finance Conference, where property types and policy issues took center stage. Then, at the Urban Land Institute’s Europe Conference, we explored how ready commercial real estate is for the big tech transformation, what goes into making a livable city, and what executives think about the future of the office sector.
February 2021 provided valuable lessons from the past year and signs of what’s ahead. Of note, a series of big-dollar investment vehicles closed, including LCN Capital Partners’ $1.3 billion in equity commitments for its third pair of sale-leaseback funds; Lionstone Investments’ $745 million U.S. Value-Add Five; and Velocity Financial Inc.’s $375 million in new funding.
Here are CPE’s must-reads for last month: