How Did Commercial Real Estate Perform in 2Q 2021?

• Increased spending, job growth and the re-opening of the economy supported strong CRE performance in 2Q

• Apartments saw one of the strongest quarters on record with absorption, rent growth and vacancy all making considerable improvements

• Similarly, Industrial properties saw vacancy decline despite sizable supply additions

• Even Retail, a sector many thought would be extremely hard-hit, recorded a vacancy decline in the 2nd quarter

• The Office market showed encouraging signs with net absorption turning positive for the first time since the pandemic – The future of remote work leaves the outlook unclear

• The Delta variant of COVID-19 poses some risk, but renewed lockdowns is not expected

• CRE investors remain bullish with the worst of the downturn likely already behind us