Outlook Mostly Positive for CRE as Lockdown Eases: NAR

Originally published on May 7, 2021, by Quintin Simmons for the National Association of Realtors.

WASHINGTON (May 7, 2021) – The U.S. economy experienced one of the swiftest declines in history last year, followed by a quick and relatively significant recovery in the second quarter of 2020. Speakers at today's Commercial Economic Issues and Trends Forum, held as part of the 2021 REALTORS® Legislative Meetings & Trade Expo(link is external), discussed these historic shifts in the nation's economy over the past 12 months while projecting a favorable outlook for the commercial real estate market in the coming year.

Lawrence Yun, chief economist at the National Association of Realtors®, predicted today that considerable capital will be pumped into the economy in 2021's second quarter, with consumers eager to tap into a year's worth of savings and unspent stimulus funds.

"Economic expansion and the jobs recovery will lead to rises in occupancy across all commercial real estate property types," Yun said. "However, overall consumer price inflation is expected to increase 3% by the end of 2021 and likely will stay stubbornly high through next year, which will increase interest rates to 3.5%."

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