Has the commercial real estate market fully recovered from the pandemic?



Read more: Will 2021 be a big year for commercial and multi-family lending?

According to the report, about two-thirds of all REITs reported higher FFOs in the second quarter than a year ago. FFO of the retail sector rose for the fourth straight quarter in the second quarter, up 21.4% over the first quarter. By ownership type, regional shopping malls saw the largest increase in FFOs, up 32.5% quarter-on-quarter to $ 1.4 billion. Selected retail FFO ($ 806 million) and FF0 malls ($ 1.03 billion) were up 22.4% and 7.9% in the quarter.

Other sectors hit hard by the pandemic also saw income rebound. FFO hotel / resort REITs rose to $ 67 million in the second quarter after four consecutive quarters of negative FFO, while office REITs rose 37.7% to $ 2 billion, surpassing pre-pandemic highs. Diversified REITs reported a 20.8% increase in FFO to $ 575 million.

Read on: The city’s tenement market is booming – will the housing crisis be next?

“The real estate sectors supporting the digital economy have maintained their strong performance as the demand for technology trade and communications continued to grow even after the COVID-19 restrictions were lifted,” Nareith said in the report.


Source link