CRE Construction, Completions Decline: Moody’s Analytics

Originally published on August 10, 2021 by Michael Tucker for Mortgage Banker's Association.

Moody’s Analytics REIS, New York, reported commercial real estate completions fell in the second quarter from an already record low first quarter.

“Material and labor shortages combined with economic uncertainty and the lingering effects of anemic business activity from early in the pandemic further pushed completion dates to later this year and beyond,” said Thomas LaSalvia, Senior Economist with Moody’s Analytics REIS. He noted the multifamily, office and retail sectors each experienced 30-plus percent declines in delivery figures quarter-over-quarter.

The 21,410 apartment units and just more than four million square feet of office space that delivered between April and June represented the lowest apartment and office completion figures since 2013 and the 39,000 square feet of new retail space is the smallest amount recorded in at least 20 years, LaSalvia said.

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