Retail real estate recovery anticipated to start mid-2021, maybe sooner.
With vaccines now a reality, the road is being paved for an economic recovery and a CRE rebound. The economic adjustment may still be cringe-worthy, but the possibility of a return to normalcy for most sectors within the year is now a genuine viewpoint. Much of the consumer and economic buoyancy we are currently experiencing is tied to anticipation of national and regional restrictions being removed.
Although, Essential retailers are still thriving, over 50% of the retail markets in the U.S. are in still in decline. It is uncertain what consumer shopping habits will look like; if customers will return to the stores or if the mass implementation of e-commerce will stay the norm. However, there is good news coming down the pike, many national and regional reports expect consumer behavior to restore some of the market share to bricks and mortar retail properties by Q3 2021.