WHICH CRE PROPERTY TYPES WERE MORE IMPACTED BY COVID?

Labor market recovery has been solid thus far – Regained ¾ of jobs lost during pandemic
Ongoing labor shortage persists with 2.5M person shortfall
- Contributing factors: Low labor force participation, skills gap, dislocation issues, etc.
This hiring disconnect could weigh on economic outlook and stoke wage inflation
End of federal unemployment benefits and students returning to the classroom may ease some of the pressure, but unlikely to be substantial
Operations at Hotels, Seniors Housing and Retailers may face hiring and wage cost issues
Even Apartments and Self-Storage which rely less on human labor, will feel the pinch
Unexpected positive: Lack of qualified labor and high construction costs limiting new supply
As job creation picks up, demand for nearly every segment of CRE is poised to strengthen