Latest posts by Randolph Taylor (see all)
- New Listing Indian Creek Apartments 1015-1025 N Farnsworth Ave Aurora IL 60505 - September 17, 2023
- Cooling Future Deliveries Set the Stage for a Rent Growth Comeback - September 11, 2023
- Price Gap Between Rent and Home Ownership in Chicago - August 6, 2023
Will Transaction Activity Accelerate in 2021?
- Prospects for a strong rebound in investment activity in 2021 are positive
- There is tremendous capital on the sidelines in the form of consumer savings and money market funds
- With the election behind us and the vaccination roll out in progress, uncertainty will likely abate in the new year
- As a result, this unprecedented wave of pent-up demand could be released into the marketplace
- The re-engaging of this capital will support commercial real estate and the broader economic recovery
Metrics Point to a Positive 2021 Outlook
- CRE transactions in 4Q 2020 are estimated to be significantly above the level of the 2Q 2020 trough
- The ongoing vaccine rollout and recently passed $900 billion fiscal stimulus will boost this momentum
Fiscal Stimulus Key to Sustain Economy and Real Estate
- The new stimulus includes a $284B infusion to the PPP, giving small business forgivable loans for re-hiring staff
- Additionally, $600 in stimulus checks and $300 enhanced unemployment will bolster spending and rent collections
- The new stimulus and health solution will also work to help alleviate investor uncertainty
As Uncertainty Abates, Investment Activity Will Rise
- Reduced uncertainty could unlock the approximate $5T in Money Market Funds and $16T in saving deposits
- Capital will initially flow to properties like Apartments, Single-Tenant Retail, Self-Storage, and Industrial
- Urban Office, business-catering Hotels, and properties in vacation markets will take longer to reap these benefits
Over $2.5 Trillion in Savings Waiting on the Sidelines
* Through December 23
Sources: Marcus & Millichap Research Services, Board of Governors of the Federal Reserve System