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