United States: Returns
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This is the news that we have been waiting for, but in no hurry to say out loud: there is a revival in the field of real estate financing.
Markets were very active at the end of the year and this level of activity did not decline during the first half of 2021.
None of this should mean that we are completely out of the forest and back to normal. Not at all.
Of all the industries most affected by COVID-19, commercial real estate is on par with retail (and there are obviously close ties here) and tops the list of those hit hardest. Sorry for the hackneyed phrase, but it’s still unclear what New Normal will look like in commercial real estate. While words such as “concessions” and “emission reductions” are still common, it seems that as tenants return to work, concerns about real estate are dying down. It remains unclear what the reduction in office space will be or what the long-term implications will be for different asset classes.
And yet there will come a point where we will all have to take a step back and see where we have been and if there were any things we could do collectively to “protect” the industry. And are there any lessons learned here the next time a fruitful event (and hopefully not one that caused so much personal tragedy and such destruction of our economic fabric) wreaks havoc around us?
There will be time for all this. Until then, lower your heads and hold on tight. Things are coming back.
The content of this article is intended to provide general guidance on the subject. You should seek professional advice regarding your specific circumstances.
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