Commercial property values have returned to pre-pandemic levels in many US markets, continuing the recovery that began late last year. according to the report from commercial real estate giant CBRE. The latest CBRE US survey found that two-thirds of investors showed increased appetite for risk during the first half of this year, and most of them expect capitalization rates – or “cap” rates, which are a measure of real estate value – to stay flat. … stable or compressible for most types of property until the end of 2021. According to CBRE, a lower capitalization rate usually indicates a higher value. The study compared US capitalization rates for the first half of 2019 with the first half of 2021. “The rapid recovery in US property markets was largely made possible by the massive fiscal and monetary response to the Covid-19 recession, which has stabilized the economy and increased property values,” said Chris Ludeman, CBRE’s global president for capital markets. “As long as there is some uncertainty, a strong economic recovery will continue to benefit real estate fundamentals, investment and value.” Industrial markets have performed particularly well after the economic downturn in mid-2020, according to CBRE. The study showed that investors expect industrial capitalization to continue to decline, driven by strong demand for warehouses, distribution centers and similar facilities. “The pandemic has affected some real estate sectors more than others,” the report says. “In every industrial market, the level of capitalization was lower than in [the first half of 2019]which reflects strong investor appetite for the increased demand for e-commerce during the pandemic. ” The study also showed that investors were willing to buy industrial assets at a premium during the first half of the year.