Your Weekly Wrap Up Newsletter #8

Weekly Wrap-Up CRE Newsletter #8

Please enjoy Prosperity CRE’s weekly newsletter designed to keep you informed and engaged with timely commercial real estate issues and data, and other points of interest.

CBRE Reports Improved Office Demand In Half Of Major U.S. Markets
For the first time since the start of the pandemic, six of the 12 major U.S. markets analyzed in a new CBRE report saw the amount of space sought by companies approach or exceed pre-pandemic levels. This implies that company leaders are not yet ready to trade their physical footprint for fully remote work. https://pcre.xyz/93m

A Wave Of Distress Didn’t Come In 2021, But Debt Markets Changed Anyway
In spite of the severe recessions of 2020 and the continued emergence of new variants of Covid-19, there has been very little in the way of debt distress in commercial real estate. In Q2 this year, just 1.3% of U.S. real estate sales came from distressed situations compared to a high of 9.8% in Q1 2009 after the collapse of Lehman Brothers, according to Real Capital Analytics data. And experts predict that unless there is another severe and prolonged recession, that number is unlikely to tick up. https://pcre.xyz/8ug

Commercial Property Prices Reached New Highs Across the Board in November

The RCA CPPI National All-Property Index climbed at a record annual pace of 18.4% and a record monthly rate of 2.3%. The price index for industrial properties rose 22.1% from a year ago, the fastest annual rate among the major property sectors and a record for the industrial series.

Apartment prices also registered the fastest pace seen for this sector, with the annual rate accelerating to 19.2%. The retail index posted an 18.8% annual increase, accelerating for the ninth consecutive month. The office sector index grew 14.3% YOY, driven by suburban office properties which increased 15.1%. CBD office prices, which had been falling as recently as June, rose 3.6% YOY in November.
https://pcre.xyz/bz9.