These are real estate executives’ worst worries for 2021

Survey shows 90% see remote work having long-term effect on office market

National /
Mar.March 01, 2021 01:30 PM
(iStock/Illustration by Kevin Rebong for The Real Deal)

(iStock/Illustration by Kevin Rebong for The Real Deal)

After an awful year for much of the real estate world, executives see full recovery not happening this year or even next, yet are optimistic about their own firms’ immediate future.

A survey of real estate executives found 85 percent see 2021 as a year of opportunity for their companies, but 70 percent said that the commercial real estate sector will not return to pre-Covid levels until at least 2023.

“You scratch your head,” said Ron Gart, a partner and chair of its Washington, D.C., real estate practice at law firm Seyfarth Shaw, which conducted the survey. “They think the rest of the economy, the rest of commercial real estate, is going to take two to three years to recover. But they’re extraordinarily optimistic for themselves. And I don’t have a good answer as to how you reconcile the two.”

The email survey drew responses from 144 owners, developers, investors, asset managers, brokers, lenders and consultants.

Their most pressing concerns were the shuttering of restaurants, gyms and other businesses; eviction and foreclosure moratoriums; and a recession in the United States.

Moreover, 90 percent believe that the shift to work-from-home will have long-term impacts on the office market, while 70 percent think the same for the residential market.

The industry was divided on the Biden administration, with 54 percent saying it will not have a positive impact on commercial real estate in 2021. (In last year’s survey, only 4 percent believed Biden to be the most favorable candidate for the real estate industry.) In 2017, more than two-thirds of survey respondents believed the Trump administration would have a positive impact on the market.

Although Biden has talked of doing away with 1031 exchanges, 62 percent of respondents did not expect tax reform to have a significant effect on the industry this year.






    Related Articles

    arrow_forward_ios
    Brookfield Asset Management CEO Bruce Flatt, Dacra president and CEO Craig Robins, L Catterton CEO James Michael Chu, and the Paradise Plaza in Miami’s Design District (Google Maps, Wikipedia, LCatterton)
    Haute rent: What Gucci, Dior and others pay in Miami’s Design District
    Haute rent: What Gucci, Dior and others pay in Miami’s Design District
    Planned Waldorf Astoria Miami wins design approval
    Planned Waldorf Astoria Miami wins design approval
    Planned Waldorf Astoria Miami wins design approval
    Rendering of N29 project as seen from NW 29th Street and 1st Avenue and Carpe Real Estate Partners co-founder David Weitz (L&L Carpe Wynwood Holdings)
    Miami board rejects design for massive Wynwood mixed-use project, N29
    Miami board rejects design for massive Wynwood mixed-use project, N29
    https://therealdeal.com/sanfrancisco/2021/10/19/sf-planning-commission-chooses-laundry-over-housing/
    Surfside collapse mediation hits standoff, as rival sides dig in heels on disbursements
    Surfside collapse mediation hits standoff, as rival sides dig in heels on disbursements
    Don Peebles, Michael Swerdlow and a rendering of the development (Black 55)
    Don Peebles drops remaining $160M claims tied to Overtown development lawsuit
    Don Peebles drops remaining $160M claims tied to Overtown development lawsuit
    Lissette Calderon and renderings of The Julia (Neology Life)
    Lissette Calderon scores $78M construction loan for second Allapattah multifamily project
    Lissette Calderon scores $78M construction loan for second Allapattah multifamily project
    From left: Cavalli Tower with Hussain Sajwani of Damac and the Surfside condo collapse site (Damac, Wikimedia, Getty)
    From Dubai to Surfside: Inside Damac’s plans to redevelop the tragic site
    From Dubai to Surfside: Inside Damac’s plans to redevelop the tragic site
    Pompano Beach mixed-use project scores $45M construction loan
    Pompano Beach mixed-use project scores $45M construction loan
    Pompano Beach mixed-use project scores $45M construction loan
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...