There is strong recovery in the multifamily, industrial, and retail property markets, while the recovery has not been as robust in the office and hotel property markets.

Expect elevated vacancy rates in the office market but low vacancy rates in the multifamily, industrial, and retail market in the next 12 months.

Sustained job creation, more consumer spending, and the continuing return of the workforce to the office underpinned the commercial real estate market's recovery across all property sectors in the first half of 2021.

Commercial real estate acquisitions during January through May 2021 rose 1% compared to one year ago as investors acquired multifamily properties, hotels, and seniors housing.

Year-to-date through April 2021, commercial transactions were 10% below the level one year ago. Commercial real estate prices continue to firm up, but valuations were still broadly down by 5% in April compared to January 2020.

The commercial real estate market is recovering, although commercial real estate transactions and the underlying market fundamentals are still weak compared to pre-pandemic conditions.

Despite the continued economic recovery and the accelerated vaccine distribution,  commercial real estate acquisitions fell 59% in February as the lingering impact of the pandemic kept investors at the sidelines.

After sales surged in December due in part from the rush to close deals by the end of the year, commercial acquisitions collapsed anew in January 2021, with sales volume down 58% from one year ago.

The commercial real estate market is recovering, but the recovery is facing a difficult challenge amid social distancing and business opening regulations to control the spread of COVID-19.

The hotel sector has been struggling the most compared to other industries, but on a positive note, less than 2% of businesses have closed.