Originally published in the NAIOP Source E-Newsletter on February 23, 2021.
Discussions at NAIOP’s CRE.Converge Virtual 2020 revealed optimism for the future despite current challenges.
The COVID-19 pandemic has created challenging conditions for commercial real estate, particularly for speculative projects and for sectors that are more exposed to cyclical risk. However, it has also created opportunities, particularly as the economy emerges from the crisis.
Both aspects of the pandemic were a major focus of discussion during NAIOP’s CRE.Converge Virtual 2020, held in October.
A Period of Transition for Retail
Compared to industrial activity this year, “it’s been a tougher year overall in retail, although it shows signs of great activity lately,” said John Morris, executive managing director, Americas industrial & logistics and retail leader at CBRE. “In late September we saw the best transaction week we’ve had since last year.”
Wade Achenbach, executive vice president of portfolio management for Kite Realty, explained that not all retail is created equal. While already struggling shopping malls were hit hard by COVID-19 closures, open-air shopping centers were performing at their peak before the pandemic and continue to have the highest small-shop occupancy in the history of the sector.