Businesses are assessing how the coronavirus pandemic has affected their industries so far and how it may shape the near future. Commercial real estate professionals can find early answers in the National Association of REALTORS®' latest Commercial Real Estate Trends and Outlook Report, released in April. The analysis is based on NAR commercial members’ responses to a survey about their transactions in Q1 2020 and a comparison of results with Q1 2019 data. In addition, the report forecasts the direction of commercial real estate sectors for the next 12 months.
Commercial real estate sales and new leasing volume declined by 1% and 2% respectively, compared with Q1 2019. However, commercial prices rose modestly on a year-over-year basis. Over the next 12 months, we expect multifamily and industrial property demand to increase, while retail and office property demand will likely decline.
Rate of Price Growth Slows
While dollar sales volume fell, commercial prices rose nearly 1% in markets where NAR commercial members are active. The rate of price growth nationally peaked in 2017.